Though the cap only applied to Berlin, a city-state with a population of some 3.6 million, Deutsche Bank said in a research note that the court’s decision could have a wide-ranging effect.
GERMANY’S highest court ruled Thursday that a cap on rent prices implemented last year by Berlin’s left-wing state government is unconstitutional and void, fueling an explosive political issue in an election year.
The cap was introduced in February 2020 by the state’s governing coalition with the goal of preserving affordable housing in Berlin, which has seen rents rise significantly since it again became capital of a united Germany in 1991.
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