A disaster foretold – After a year, Berlin’s experiment with rent control is a failure. Rents may be down, but so is the supply of homes.
”I WORRY ABOUT Berlin,” says Rolf Buch, a born and bred Rhinelander. The chief executive of Vonovia, Europe’s biggest residential-property firm, thinks that the city’s policy of capping rents has achieved very little good, but caused severe collateral damage. Even if the federal Constitutional Court declares the rent cap unconstitutional in the next few months, as many expect it to do, Berlin will not go back to the status quo ante. Protests are here to stay, Mr Buch reckons.
Building will come to a complete standstill in Berlin too.
But Berlin’s red-redder-green politicians (SPD, the Left Party, the Greens) don’t know anything about building (look at the state the city of Berlin is in). They can only tear things down. Oh, yes. And redistribute. They will redistribute for as long as it takes to get anybody who’s got anything to get out of town.
Berlin Builders Hit the Streets in Backlash Over Rent Freeze – The German capital’s government is trying to ease the burden on tenants after a property boom caused rents to double over the past decade. However, critics of the plan — including economists and large landlords — have said the only way to address growing demand for housing is to build more homes.
The rent-freeze legislation will start its passage through Berlin’s parliament this week and is expected to come into force in the first quarter of next year…
The city’s plans “threaten to cause considerable damage to both the housing market and Berlin as a whole,” IW institute economists wrote in a recent report for the Christian Democratic Union party, which is in opposition in Berlin and opposes the measures. Scrapping the plan is “urgently needed from an economic perspective to prevent wider damage to the Berlin economy,” they added.
That means confiscation or dispossession. You know, like confiscating private property?
And the German Greens hold this to be denkbar – another cool German word meaning conceivable or possible.
After all, the world must be fair and if rising property rents in cities like Berlin – caused by city governments like Berlin (Social Democrats and Greens for decades) – are creating hardship for the 85 percent (!) of Berliners who don’t own property – the government does everything it can to discourage owning property here – then the government that created this mess will simply confiscate the private property of those currently developing new housing and… And what? Give it to the poor? Been there, done that. We all know how that turns out. And who foots the bill. Robin Hoodlums never learn. They have no intention of learning.
Thousands took to the streets of Berlin on Saturday in protest against rising property rents and called for properties of large-scale landlords with more than 3,000 houses to be taken over by the government.
“Das Grundgesetz sieht Enteignungen zum Allgemeinwohl ausdrücklich vor.”