Munich tightens rent control for municipal apartments

27/07/2018

The city of Munich decided yesterday on a “municipal rent control” to be applied to the 37,000 apartments of the municipal housing associations GWG and GEWOFAG. Starting in August, rents for these apartments may only increase by 10% within five years. According to the nationwide rent control law, rents may be increased by 15% in three years. In addition, rents for Munich’s municipal apartments may not exceed 90% of the respective rent index value in the future. “Munich, together with its housing associations, is sending a clear signal against the upward trend in Munich rents with the city rent control, and thus serves as a model for other municipalities,” said Mayor Dieter Reiter after the city council resolution. He called on the Berlin coalition to introduce an “effective rent control and to modify the calculation of the rent index”.


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