Uncertainty Looms Over Berlin's Housing Market as Mietpreisbremse Faces Expiry

The rental price cap, set to end in 2025, sparks debate over its future and potential reforms to address rising housing costs.

Germany's Mietpreisbremse, a rental price cap in high-demand areas, is set to expire in 2025, raising concerns over potential rent hikes, particularly in Berlin.
The regulation limits rent increases for new leases to 10% above local averages but excludes newer buildings and extensively modernized properties, leaving gaps in tenant protections.
Calls for an extension and reform of the Mietpreisbremse have intensified, with Berlin, Hamburg, and Bremen advocating for urgent action in the Bundesrat before the current legislative period ends.
Political divisions complicate the cap's future, with SPD and Greens supporting its extension, while the FDP and parts of the CDU remain opposed or ambivalent ahead of the February federal elections.
Experts warn that delays in extending or reforming the policy could exacerbate housing affordability issues, impacting millions in areas with tight rental markets.