Because a law called "Mietpreisbremse" makes it entirely unattractive to rent out. That's a strict regulation on how much rent you are allowed to take. And that's just the direct financial aspect. Once a tenant lives in your place, it's really hard to get rid of them. Even if they act like total scumbags, trash the place, disturb the neighbors, pay their rent late.
No reasonable investor finds it attractive to build new rentals in German cities. Result is a shortage. And because of the shortage, rents skyrocket. And because of that, you have "Mietpreisbremse". And because of that, there is even less rentals and even more shortage.
If only anybody would understand that you can't fight the market like that.
No reasonable investor finds it attractive to build new rentals in German cities. Result is a shortage. And because of the shortage, rents skyrocket. And because of that, you have "Mietpreisbremse". And because of that, there is even less rentals and even more shortage.
If only anybody would understand that you can't fight the market like that.