Housing market regulation in Berlin. Opportunities and risks for investors and the society in general with special focus on rent control and social housing

Bachelor Thesis from the year 2021 in the subject Business economics - Industrial Management, grade: 1,7, University of Applied Sciences Essen, language: English, abstract: This thesis is about the housing market regulation in berlin. The paper begins with an overview of the current housing market situation in berlin. The development of the demand for housing and the supply of housing is presented and then put into context. The third chapter deals with the berlin rent cap. First, the legal basis is explained before the legal assessment of the rent cover is carried out. In a first step, the formal constitutionality of the law is examined. Then the material constitutionality regarding the compatibility of the rent cap with Art. 14 and 3 GG is analysed. In the following, possible economic effects of the rent cap are presented and supplemented by an overview of empirical data from studies on rent control. The fourth chapter deals with social housing. As in the second chapter, the current situation in this residential segment in berlin is presented first. Subsequently, social housing is examined as a form of investment. In this context, the reluctance of private investors to invest in affordable housing is discussed and conditions are explained under which construction activity in social housing could be increased in a way that is worthwhile for investors and society. The aim of this work is to examine which interventions in the berlin housing market with the intention of increasing affordable living space are being carried out by the Berlin state government and how these are to be assessed against the background of the resulting opportunities and risks for investors and society as a whole.