Berlin cracks down on Airbnb rentals, threatening hefty fines, to cool housing market
Rents in German capital have skyrocketed over past five years, thanks partly to short-term lets
Berlin from Sunday began restricting private property rentals through Airbnb and similar online platforms, threatening hefty fines in a controversial move meant to keep housing affordable for locals.
The German capital fears that the growing trend of people letting out apartments to tourists through sites such as Airbnb, Wimdu and 9Flats is cutting into
a limited property supply and driving up rents.
From May 1, the city state will enact a new law known by the German mouthful of “Zweckentfremdungsverbot” – or prohibition of improper use. It is “a necessary and sensible instrument against the housing shortage in Berlin”, said Andreas Geisel, Berlin’s head of urban development.
“I am absolutely determined to return such misappropriated apartments to the people of Berlin and to newcomers,” he said.
Rents in Berlin shot up 56 per cent between 2009 and 2014, although at around €10 (HK$89) per square metre this year, they are relatively low compared to other European cities. Given that it is more profitable to rent out whole apartments for short holiday lets, some investors are holding on to apartments for such rentals rather than having long-term tenants.