Contract signed: Will life in Berlin become cheaper? | Free press

Politicians, the real estate industry and tenants’ organizations in Berlin negotiated faster construction and cheaper housing for six months. An agreement was signed on the results.

Berlin.

After some six months of negotiations, the Berlin Alliance for New Housing and Affordable Housing agreed on a series of measures to accelerate construction in the capital and curb rent increases.

Members of the Senate, mayors of poviats, representatives of cooperatives, real estate companies and industry associations have signed a joint agreement in the Rotes Rathaus.

However, Berlin’s Tenants’ Association and the Central Real Estate Commission (ZIA) had previously announced that they would not support the declaration. The Heimstaden estate group was also not part of the party, but will follow suit, Berlin mayor Franziska Giffey (SPD) assured after the signing ceremony. It assumes that the list of signatories will continue to grow. “We have achieved more than is even discussed in other Länder.”

100,000 new homes

According to the 22-page contract, at least 100,000 jobs are to be built in Berlin by the end of 2026. new apartments, half of which in the lower and middle price segment. Development plans in this area should be available within three years. At the same time, up to 5 thousand social housing is to be subsidized annually – EUR 740 million has been allocated to this in the budget for 2022 and 2023.

In addition, large private housing companies have pledged to reserve 30 percent of housing for tenants who are eligible for an Eligible Housing Certificate (WBS). The alliance partners also agreed that there should be no cold net rent increases, which would lead to a burden on WBS-eligible households of more than 30 percent of the household’s net income.

And large private housing companies will have an 11 percent limit on rent increases over three years in the future. It is also planned in the federal government, but it is not yet certain when. To some extent, Berlin prefers regulation.

Construction senator Andreas Geisel (SPD) admitted that 100,000. apartments by the end of 2026 is a very ambitious goal. “We will all have to work together.” (dpa)

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