Housing construction in Berlin: Every prevented apartment is one too few

For those involved in the Berlin property market, the wait for a new government to be formed begins

Berlin’s population has grown by more than 300,000 since 2015. Put simply: in just over ten years, a city the size of Bonn has effectively moved to Berlin. Added to this are those who already live in Berlin and are looking for a new flat – because they are starting a family, separating, want to downsize in old age, or their life circumstances have changed. Housing was therefore rightly one of the central issues of the election campaign. However, with a rental rate of around 85 per cent, the parties’ focus during the campaign was primarily on protecting existing tenants.

One group featured surprisingly rarely in both the political discourse and planning practice: those who have not yet found a suitable flat.

The voices of future residents are missing from the planning process

Anyone familiar with development plans and planning permission procedures knows how many legitimate interests come into play: local residents, town planning, environmental and heritage protection, the roads and green spaces department, water authorities, the fire service and numerous other public bodies. Yet one perspective consistently remains overlooked: that of the people who are eventually meant to live there.

Whilst authorities and neighbours vociferously advocate their concerns, future residents have no say in the process. When new regulations or design changes delay a project, drive up costs or result in flats being cut from the scheme, the lost housing often has no advocate. This is not an argument against good urban planning or environmental standards. But the consequences of every single requirement on costs, timeframes and the actual supply must finally be given equal consideration in planning procedures.

A tenant is not the same as someone looking for a flat

Anyone who has lived for many years in a suitable flat with a favourable existing tenancy agreement experiences the Berlin housing market differently from a young family looking for a three- or four-room flat today.

Just how difficult it has become to move house is illustrated by the turnover rate in the housing stock of Berlin’s BBU member companies: in 2024, only 4.6 per cent of tenancy agreements were terminated by tenants – the lowest figure since records began. The tight market is thus not merely reflected in rising rents. People also remain in flats that no longer suit their life circumstances simply because there are no alternatives. This perspective, too, played a significantly smaller role in the pre-election debate than the mere protection of existing tenancies.

What regulation can achieve – and what the new government must deliver

There is a shortfall of around 130,000 flats in Berlin. At the same time, the city continues to grow, whilst property developers and investors face high construction costs, demanding financing conditions and extensive regulatory requirements.

Tenant protection plays an important role in a tight market. It can alleviate social hardship and protect people. However, further regulation or debates on expropriation do nothing to change the number of available flats.

That is why the elected parties must now set aside the campaign rhetoric and swiftly refocus the political debate on how additional housing can be planned, approved and built more quickly. For those looking for a home, the only things that matter in the end are whether new housing is being built, how long they have to wait for it, and whether it is affordable. Their interests must finally be given priority in politics and in planning procedures. After all, behind the abstract term ‘housing shortage’ lie real people who lack a suitable home.