Taxi driver Michael Roeder, 56, for 20 years lived in an apartment in the center of Berlin near the checkpoint "Charlie" on Friedrichstrasse, while the increased rents forced him to move out.
"In my house now inhabite only by millionaires", said native Berliner, two years ago moved to suburban area Britz, about eight kilometers south of the central Mitte district, where once had been his home.
The cost of living in major cities of Germany is growing at the fastest pace since the country's unification in 1990. Depositors invest in the real estate market to benefit from the growth of Europe's largest economy. In a country where the percentage of tenants in relation to property owners almost the highest in Europe, a sharp rise in the market was an unpleasant surprise to many voters who may express no confidence in Chancellor Angela Merkel's election on September, 22.
The housing problem is one of the main topics on the agenda of the Chancellor. Many politicians debate the arguments about the compensation and restrictions on rent increases. According to them, this should solve the problem tenants.
"Politicians understand that in big cities, where prices have risen, degree of dissatisfaction is increasing. And they see it as a wake-up call," said Peter Grottian, a professor of political science at the Free University of Berlin.
Protect tenants
While the British government of David Cameron enters the relaxed credit program allocates £3.5 billion (€4.1 billion) to stimulate the purchase of homes, the central idea in Germany of Chancellor Merkel is trying to secure tenants on the willingness of the owner to continuously improve their profits.
Approximately 53% of Germans own their homes, compared with 70% in Britain and 72% in Italy. In the U.S. the figure is 65%. Merkel voiced this problem in April and announced decisions that the growth of rents for existing tenants would be limited to 15% over three years. In February, representatives of the CDU promised voters to build more affordable housing.
"We need our intervention in the real estate market. Among the politicians have a disagreement on this issue, judging by the fact that not everyone applauded," said Angela Merkel, stressing the need for affordable rent.
Rents in Germany grew by about 15% over the past five years, and property prices - by 23%. Workers earned about €3391 per month in 2012, which is 12% more than in 2007.
The Social Democratic Party of Germany sees a way to set a limit on the rent that can be put to new tenants to the property owner. The limit will be the amount that is 10% more than the average rent in the district. It will "stop the uncontrolled growth of prices," the party's program.
"Discussing now idea is completely wrong and counterproductive. They not only complicate the process of investing, but even the discussion makes the market less attractive for the construction and purchase of housing," said Jörg Schwagenscheidt,CEO of GSW Immobilien AG, the fourth-largest owner of real estate in Germany.
Berlin sky
The growth of the real estate market in Germany is contrary to the rest of Europe, where house prices have fallen by an average of 3.7% over the past five years. Surprisingly, the German real estate market was in stagnation in 1995-2008, as in most European countries experienced a boom of construction and sales facilities.
The greatest demand for housing is in Berlin, especially in the central areas, where rapid population growth has led to the most dense development. Hundreds of tower cranes staring at the sky and the protests against the sealing of buildings are becoming more frequent event.
In Prenzlauer Berg, Berlin's trendy district, which is full of boutiques and restaurants, building renovation with modern facilities has been banned at the legislative level. This was done to ensure that investors were more difficult to resell these buildings. Since January forbidden to combine apartments, set under floor heating and fireplaces.
Rents in Berlin has grown by 32% over the past five years, while apartment prices rose by 41%. Now, one-room apartment in the German capital of 35 sq.m. can be purchased for around €75,000. Two-bedroom apartments of 60 sq.m. in a new building cost about €200,000.
Squeezed dry
"We need to stop the greed. Possible to obtain a fair rental income. But you can not wring dry the whole group," said Jens-Holger Kirchner, the head of one of the districts of Berlin, and a member of the party "Greens", sponsored by the adoption of the prohibition laws.
Despite the growth, the German real estate is cheaper than in other major European countries. The tenant without family has to pay about 25% of his annual budget to rent an apartment in Munich, the most expensive German city. For comparison, the figure in London will be 40% and in Paris - 35%. Average rents in Munich are about €14 per square meter, compared to €44 in London.
In addition, real estate in major cities of Germany is cheaper than in England. In Munich the square meter costs about €4,600, while in London - €9,270. Apartments of 32 sq.m. in the heart of the Bavarian capital area cost around €120,000, while the one-bedroom apartment of 36 sq.m. on the outskirts of Munich - about €55,000.
It is little consolation for the taxi driver Michael Roeder, who works in the central Berlin, where he had lived as long as it does not hurt blow to his wallet.
"We are always looking for new people in Berlin", he said, turning on Unter den Linden, Berlin's famous avenue. "But that does not mean that the indigenous people should be squeezed out of their home areas."
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