The new legislation establishes the maximum price per square metre at €9.80 and affects the rental contracts of 1.5 million homes in the German capital, where 85% of the population lives in rental properties, for the next five years. In Spain, just 19% of the population live in rental homes, according to the most recent data from INE. From 2022, landlords in Berlin may increase rental prices by 1.3% per year to allow for inflation.
All new contracts will be signed under the new law, with fines of up to €500,000 in the event of an infringement. Victims will be able to go to court to have price freezes applied, including with retroactive effect. Rental prices have doubled in Berlin in the last decade.