The Berlin Senate has decided the controversial Mietendeckel for the capital. According to Senate circles, the red-red-green state government has implemented a compromise formulated by the ruling parties on Friday.

The bill stipulates that rents for around 1.5 million Berlin apartments built before 2014 can not rise for five years. Excluded are social housing. Even with new leases within this period, landlords may not increase their prices, under certain conditions, they may even be reduced, for example, if the rent is more than 20 percent above the ceiling of 9.80 euros expected per square meter. From 2022 onward, landlords can increase their rents by 1.3 percent a year to compensate for inflation; modernization measures for accessibility or climate protection can place up to one euro per square meter on rent.

The rental cover law is to apply retroactively from mid-June 2019. The rent reduction rule is expected to come at the end of 2020 due to the high administrative burden. So should remain time to prepare the implementation and to hire up to 250 people in the administration.

The real estate industry criticized the plans. It fears, inter alia, negative effects on housing construction and a decline in investments in the modernization of existing real estate. The tenant association, on the other hand, spoke of a historic opportunity to secure affordable rents for the majority of the population.