Overview

• The Bundestag approved the extension with support from CDU/CSU, SPD and Greens while the AfD voted against and the Linke abstained.
• New leases in designated tight markets remain capped at 10% above local comparative rents but exemptions for new builds and post-October 2014 modernizations persist.
• Since its 2015 introduction, average asking rents in Germany’s 14 largest cities have risen by nearly 50%, with Berlin’s listings more than doubling.
• Tenant advocates and opposition lawmakers warn that exemptions for furnished rentals, index-linked clauses and the lack of effective penalties undermine the cap’s impact.
• Hubig plans to convene an expert panel this year to propose reforms on index rents, furnished and short-term lets and to strengthen enforcement measures.