Munich: SPD wants to apply a rent freeze
Munich’s city council will decide today whether rent prices for the city’s own residential properties will be frozen from August until 2024. The push was initiated by the SPD faction in the city council, who wants to introduce the measure in addition to the rent control regulation already in place. According to the city administration, the freeze would affect 61,969 units owned by municipal companies Gewofag and GWG München. Whether the proposal is accepted is open to speculation, as the financial impact would be enormous: Rent control for the next five years represents loss of income for the municipal companies of €58.8mn; if rents are frozen completely, that figure increases by another €25.9mn. In the companies’ point of view, that money could have been used for building 1,400 new apartments.
Subscribers to our premium service have access to this article in full as well as to an additional 510,000+ news items: all filterable by topic, company, asset class, city or keyword. In TD Premium you can search for investment deals, leases, current project developments and company news with pinpoint accuracy.
TD Premium is Germany’s leading property information tool that interconnects news, transactions, project data, market and company information in a unique and flexible system.