Flats as capital investments in Berlin – security for tenants and investors

Below, you will find a small selection of legal changes that have already come into force or will do so in 2022. These are joined by the regulations and plans of the local Berlin government and the national government. The combination of laws that have already been passed and the plans from the two coalition agreements at the national and local level means that there is a wide variety of topics you are likely to find interesting.

The rent freeze is being extended In the coalition agreement’s ‘Tenant protection’ section, the new federal government has set out the renewal of the rent-freeze regulations and extended these until 2029. Furthermore, it has been […]

PropTech is short for ‘Property Technology’, i.e. digital technology for the property sector. The term is most commonly used in relation to start-ups developing digital products and services for every conceivable process within the property sector. A broad field. To date, however, PropTech remains relatively unknown among private landlords in Germany. And yet they too stand to benefit tremendously from intelligent and innovative digital solutions.

Although the German property sector was initially slow to embrace digitalisation, large housing associations, institutional investors and product developers are now keen users of these innovations developed by PropTech companies. The main reasons for using […]

In the first half of 2025, the Berlin real estate market recorded a marked increase in transaction activity. The Expert Committee for Property Values in Berlin (Gutachterausschuss) registered 10,864 purchase transactions, representing an increase of 16 percent compared with the same period of the previous year. Transaction volume rose by 13 percent to a total of EUR 6.9 billion [1]. Price developments varied by asset class. Condominium prices increased on average by 4 percent. New-build apartments recorded a nominal price increase of 12 percent. This figure was significantly influenced by micro-apartments; excluding this special segment, the price increase for new-build apartments was also 4 percent [1]. In the segment of residential rental buildings, the number of transactions rose by 12 percent, while prices increased by 6 percent [1]. Alongside the market recovery, key regulatory instruments were extended. In June 2025, the German Bundestag approved the nationwide extension of the rent cap (Mietpreisbremse) until 31 December 2029; the Bundesrat gave its approval in July 2025 [2][10]. At the state level, the Berlin Senate extended the conversion regulation (Umwandlungsverordnung) by five years. It entered into force on 13 March 2025 and applies to 81 social preservation areas [3]. The property tax reform also came into effect on 1 January 2025. The State of Berlin set the assessment rate for property tax B at 470 percent [4]. On 11 July 2025, the Expert Committee published the 2025 cost value factors (Sachwertfaktoren), based on an analysis of 3,297 purchase transactions from 2022 to 2024 [5]. In addition, the Berlin Senate issued a rent limitation ordinance in April 2025, ensuring the application of the rent cap from 1 June to 31 December 2025 [6].

Legislation and Regulation 2025 Property Tax Reform The property tax reform came into force nationwide on 1 January 2025. Berlin applies the federal valuation model, which is based on a comprehensive reassessment of all properties. […]