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TEG - TAG Immobilien AG News Story

€25.04 0.2  1.0%

Last Trade - 21/02/20

Sector
Financials
Size
Large Cap
Market Cap £3.06bn
Enterprise Value £5.06bn
Revenue £344.2m
Position in Universe 224th / 1050

UPDATE 1-Berlin's ballooning rents to be frozen for five years

Tue 18th June, 2019 2:18pm
(Adds context, updates and edits)
    BERLIN, June 18 (Reuters) - Berlin's city government on
Tuesday decided to freeze rents for five years, heeding
residents' complaints that their once famously affordable city
was pricing them out.
    For decades after German unification in 1990, the capital
was a magnet for artists, musicians and students drawn by
housing far cheaper than in other major European cities - partly
the legacy of its decades marooned inside Communist East Germany
as a mere satellite of the capitalist West's economy.
    But around 40,000 people a year have moved to Berlin in the
last decade, and rents have more than doubled since 2008,
according to a study by the online housing portal immowelt.de. A
record influx of refugees in 2015 has not helped.
    Some 85 percent of Berliners rent their homes rather than
owning them. Proposals to help them had ranged from
expropriating large property owners to speeding up affordable
housing projects.
    Berlin's Senator for Urban Development and Housing, Katrin
Lompscher, said the planned five-year freeze would apply
retroactively from June 18 - a measure apparently designed to
prevent landlords rushing to raise rents before the measure
becomes law.
    The Senate will prepare a bill to be sent to the city's
parliament by Oct. 15. It is intended to come into effect in
January.
    Even though rents have risen, they are still cheap compared
with London or Paris. A two-bedroom apartment in Berlin's trendy
Prenzlauer Berg neighbourhood costs about 1,500 euros ($1,700) a
month, about half the cost of a similar flat in London's
Primrose Hill.
    Shares in some property companies with large portfolios in
Berlin fell after the announcement. Deutsche Wohnen  DWNG.DE 
stock was trading some 0.9% lower.
 ($1 = 0.8931 euros)

 (Reporting by Holger Hansen und Joseph Nasr; Editing by Kevin
Liffey)
 ((Joseph.Nasr@thomsonreuters.com; +49 172 678 5836; Reuters
Messaging: joseph.nasr.thomsonreuters.com@reuters.net))
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