Acute housing shortage expected in Berlin

As part of a housing market barometer conducted by Investitionsbank Berlin (IBB), around 200 real estate experts were surveyed, including those working for housing companies, banks, property management companies, real estate agents, academia, and politics. According to the survey, industry experts expect a further decline in the supply of rental apartments in Berlin, especially in the lower to middle price segment. The tense situation on the rental market is primarily caused by insufficient supply. For the first time in a long time, a balance between supply and demand can be found in the highest price segment, starting at net cold rents of €20 per square meter. According to the survey, medium-sized apartments with a living space of between 70 and 100 square meters are in particularly high demand, but are lacking in the lower and middle price segments. The situation is further exacerbated by the increasing decline in the supply of social housing. According to experts, the reasons for the continuing shortage of housing in Berlin are primarily high construction costs, coupled with regulations, lengthy building permit procedures, and strict rules for tenant protection, which deter private investors.