Berlin Discusses Restrictions in Home Purchase

In order to relax the housing situation in the capital, the mayor considers limitations for foreign real estate purchases.

The capital's real estate market is tense. (Source: CC License, stocksnap.io)

This spring, New Zealand demonstrated how it’s done: Due to heavy competition on the real estate market of the insular state, the government announced that from now on, foreigners will be prohibited to buy houses in the country. Now, Berlins ruling mayor Michael Müller (SPD) consults about a similar approach in Germany’s biggest city – referring to the example in the Pacific.

That’s because it has been long since demand surpassed the supply: There’s housing shortages in the capital. In order to counter this development further, the finance senator currently develops propositions on how to avoid speculations in the living space.

The senate administration for urban development anticipates that until 2030, 117,000 additional flats will be necessary in order to provide for the ongoing, strong demand. Because in the upcoming 12 years, 157,000 new people will move into the town.

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