State-owned housing companies raise rents for 90,000 apartments in Berlin

On Monday, October 7th, Stephan Machulik (SPD), State Secretary for Housing, informed the Urban Development Committee that Berlin’s state-owned housing associations are planning to increase rents for more than 90,000 apartments in the city. The affected properties include 20,000 apartments owned by Degewo, 27,900 units owned by Howoge, 12,500 residences owned by Gesobau, and 12,200 dwellings owned by WBM. According to Machulik, the rents charged for these apartments will increase by an average of eight to nine per cent. When measured against the state-owned housing companies’ total housing stock, he added, the increase would not exceed the prescribed limit of a maximum 2.9 per cent price increase per year. Prior to Machulik’s appearance before the Urban Development Committee, Gewobag had already announced rent increases for around 20,000 apartments averaging 8.3 per cent or EUR 32.00 per month. Tenants living in particularly spacious apartments can expect increases of up to EUR 207.33. Following the collapse of the Berlin rent cap, the Senate froze rents within its own property portfolio. Subsequently, state-owned housing companies in Berlin reached an agreement with the SPD-CDU government in autumn 2023, permitting them to implement rent hikes starting in 2024. In light of the companies’ mounting debts, which stood at nearly EUR 17 billion by the end of 2021, a figure that has not been updated in the last three years, these appear to be necessary measures.