1. It will take away one of the ways they abuse people. Who knows, if they keep it up, maybe they'll be expropriated next :)
2. Investors touching the Berlin real estate market right now are anyways demanding exorbitant rates just because they can. Normally, this would at some point reach an equilibrium, but so far it's going up and up with no end in sight, pricing out most people.
And I bet not all of them will scurry away. Any economic measure will not have a perfect effect, there will always be those that break ranks.
I'm not hoping for anything, but if a bad actor is playing with people's lives, I also don't have a problem that they get punished for it.
Now the only issue with expropriation would be the panic it cause in the markets, because otherwise who cares whether residential property company #201f exists or not.
Setting some rules around renting, like the government has been and is doing, to prevent abuse and speculation is more palatable, but still has too many people running around screaming, based on a simplistic presentation of supply and demand without keeping into account that there are other factors that would and should trump the raw economic aspects.
It's not like the government has just instituted rent control and that's it. It's a temporary measure, restricted to existing stock. They will try to build more.
In the end it's not clear at all that leaving the situation spiral even more out of control would result in a better outcome than even just rent controls without other measures. Why is it so hard to get an apartment in Berlin that people resort to bribing the landlords? Why does one have to "compete" against dozens of other people, with zero ability to negotiate and having to sacrifice their financial privacy?
Last I read about it these companies had record profits and now you and others are complaining that they won't build any more because they can't get profits? How's that work, mate?
> Why is it so hard to get an apartment in Berlin that people resort to bribing the landlords?
Why does one have to "compete" against dozens of other people, with zero ability to negotiate and having to sacrifice their financial privacy?
Low supply. You are not fixing that with a rent-freeze, you are making it worse.
> Last I read about it these companies had record profits and now you and others are complaining that they won't build any more because they can't get profits? How's that work, mate?
These companies, especially Vonovia, will continue to make a profit for their shareholders, even if they take a hit because their assets in Berlin devaluate. They just will not invest further in Berlin, won't build/buy&renovate housing.
If I were a shareholder in Vonovia i'd be pretty concerned of them taking such a risk, I wouldn't want them to invest in Venezuela either.
Yeah that's what I was hinting at (one has to read the entire paragraph): rent control or no rent control, the situation already sucks both for existing tenants and people that are looking for new apartments. Might as well protect existing tenants, since new tenants are screwed anyway.
2. Investors touching the Berlin real estate market right now are anyways demanding exorbitant rates just because they can. Normally, this would at some point reach an equilibrium, but so far it's going up and up with no end in sight, pricing out most people.
And I bet not all of them will scurry away. Any economic measure will not have a perfect effect, there will always be those that break ranks.