Berlin becomes a nightmare for real estate investors?

With Trepidation for the real estate industry is looking to Berlin today. As the first state government of the red-red-green Senate wants to introduce a Rent cap to stop the displacement of tenants. What are the living groups would be particularly affected?

By Notker Blechner, boerse.ARD.de

Hardly an issue, the capital is currently moving as much as the discussion on the "Rent cap". During the one, first of all welcome the tenant, the thrust of Berlin left the city development Senator Katrin Lompscher, revolt of the house - and apartment owners. The lobby Association Haus & Grund has set up on his website as a kind of Countdown Banner that shows how many hours, minutes and seconds, beşiktaş escort to increase the rent.

Berlin Bausenatorin Lompscher showed upset. They criticized the direct call for an increase in rent of house and land as a "devastating Signal". Tenants would be as swearing to the pledge of the real estate lobby, you.

critics speak of the "planned economy" and "violation of the Constitution"

Kai Warnecke, President of house and land, defended the action, and announced to sue against the rent cover in Berlin, if he was coming. According to his assessment, he was "unconstitutional". Other Mietdeckel opponents speak of the "planned economy" and "violation of the constitutionally protected freedom of property".

Berlin residential Senator Katrin Lompscher, prior to the Berlin rent index table 2019

Tuesday, Berlin wants to write history. The Senate is planning a law stating that starting in 2020, Rents in the capital for five years, not increased may be. A mietober limit should be set. Vertices for a corresponding state law to be in the Senate and is expected to be decided advise.

rents are> 2025

the situation on The housing market is particularly tense in metropolises such as Berlin, Frankfurt and Munich. Prices for condominiums and Rents have risen strongly in recent years and have doubled for the part. In order to secure affordable housing, apply for a nationwide Rent control. Berlin's proposals go beyond this, however.

ARD stock market's Outlook for real Estate 2019

18.06.2019 17:17 PM

Download the audio file

We offer this Audio in the following formats for Download:

- mp3

note: , If the audio file is not saved when you Click automatically, you can select click with the right mouse button and "save target as...".

The plans for a "Rent cap" in Berlin, the real estate investors covered in the last two weeks. Through a rent moratorium will it unattractive to investors, to build homes, warned the real estate Association ZIA. The loss to the tenants.

real estate stocks in decline

The real estate shares came in the last two weeks under strong pressure. The shares of Ado Properties in the SDax fell by over 20 percent. The title of the MDax-listed Deutsche Wohnen lost around eleven percent. Analysts at Morgan Stanley downgraded due to the expected rental cover, the Deutsche Wohnen from "Overweight" to "Equal-Weight" and the rate lowered target of 50 to 39 euros. Less serious were the papers of Vonovia with a Minus of three percent.

B5 stock exchange 09.15: real estate shares under pressure

18.06.2019 17:17 PM

Download the audio file

We offer this Audio in the following formats for Download:

- mp3

note: , If the audio file is not saved when you Click automatically, you can select click with the right mouse button and "save target as...".

The project of Berlin's urban development Senator Lompscher creating uncertainty, said Andre Remke, real estate expert at Baader Helvea Equity Research. "This uncertainty will continue for some time, as long as no decision is made as to whether the proposal really has a Chance to be in a law."

"If Berlin would do school, I would have concerns as a real estate investor, that other cities follow suit," said a stock expert. "This has to do with the market economy and ignores the fact that the low-interest-rate policy of the ECB is the driving force of the real estate boom."

the Biggest loser: Ado Properties

Ado Properties would be most affected by the rental cap. The Israeli company has focused on the Berlin real estate market and operates around 24,000 homes in the capital. Ado Properties had recently announced that the housing stock in Berlin is continuously expanding. At the annual General meeting on Thursday, the Ado Board of Directors must explain to the shareholders how he sees the future prospects in Berlin.

More rates are likely to suffer information about ADO Properties

... and Deutsche Wohnen

Also under the Berlin act, the Deutsche Wohnen. The company, keeps today its annual General meeting, is absolutely the largest private landlords in the capital saw. It's alone in Berlin and in the surrounding areas of over 116,000 apartments and commercial units in return for a rent of 6.75 euros per square meter.

Further course information, to Deutsche Wohnen

For the largest German residential real estate group Vonovia a Berlin rent moratorium would be acceptable. The Dax-listed company stresses that less than ten percent of its portfolio in Berlin.

Further course information, to Vonovia

Berlin school is also in other Federal States?

Although is likely to be the Mietdeckel-law difficult to implement, experts expect a wave of lawsuits. But the theme could also be used in other States and perhaps even nationwide on the agenda. So the Left in Hamburg and Hesse, also calls for a cap on the Rent. And the Commissioner of the SPD Co-chief Thorsten Schäfer-Gümbel spoke in the Berlin "Tagesspiegel" for a "rental cover in the whole of Germany".

in this respect, the risks for real estate investors is likely to increase. The already showed the expropriation debate in the spring in Berlin. There is a citizens ' initiative collected expropriate with the name "Deutsche Wohnen & Co" thousands of signatures for a referendum for the nationalization of large private housing companies. The expropriation debate charged only for a short time, the real estate stock. The recently well a year suspended interest rate turnaround in Europe is likely to require the prolonged Run on German real estate.

real estate the case – What happens when interest rates rise?
25.04.2019

source: boerse.ard.de