The boom in the real estate market of German capital city is breaking another record but a coalition of social democrats, greens and socialists want to slow down prices and stop this growth, WSJ reports.
Over the past two years, the government, under the pressure of tenants facing financial hardships has doubled the number of areas subjected to laws aimed at combating speculation in the market. This made it possible to block private sales in favor of state companies and non-profit organizations, prohibit the termination of leases and even carrying out repairs. The problem is that this could lead to an increase in the cost of rent, which violates the rights of tenants.
Last month, the creation of four more such zones in the center of Berlin was announced. This decision followed a new resolution approved in May, which gives the right to use vacant housing.