For years, Berlin stood as a symbol of progressive housing policies—an oasis for renters in an increasingly expensive Europe. With around 84% of residents living in rental properties, the German capital was known for long-term contracts, regulated rents, and civic movements defending the right to housing. Yet in 2023, asking rents rose by 21.2%, turning the city from “poor but sexy”—as a former mayor once described it—into one of the most speculative real estate markets in the world.

At the heart of the price surge lies a little-known but widely exploited legal anomaly: a loophole in federal German law that allows landlords to bypass rent controls by leasing out furnished apartments for temporary use. These rentals are exempt from rent caps (Mietpreisbremse), allowing prices up to five times higher than the city average. In Berlin, apartments typically rented at €7.67/sqm are now being offered at over €30/sqm if furnished and temporary—reaching up to €50/sqm in some cases.

Originally designed to accommodate international professionals in transition, this loophole has become the norm: in neighborhoods like Kreuzberg, 70% of listings fall into this category. Nationwide, listings for furnished temporary rentals have increased by 185% over the past ten years, while listings for long-term rentals have plummeted by 60%.

Behind the phenomenon, an entire industry of digital platforms—such as Wunderflats and Housing Anywhere—has emerged to help landlords maximize profits within this system. By offering “turnkey solutions”—including property management, furnishing, and legal consulting—these startups, often backed by venture capital funds, are further accelerating the shift away from regulated rentals.

The domino effect is troubling: the explosion of temporary rentals distorts the official rent index (Mietspiegel), pushing it upward and fueling increases even in the “normal” rental market. Weak enforcement of existing laws and limited awareness of tenant rights—especially among foreigners—only worsen the situation.

While some districts, such as Charlottenburg-Wilmersdorf and Neukölln, are attempting to impose restrictions, a comprehensive national reform is still lacking. As activists prepare for a second referendum to expropriate 240,000 vacant apartments, Berlin edges closer to a model that prioritizes financial returns over the right to housing.

In such a complex and polarized context, innovative digital tools can play a vital role. Regg3 supports companies and organizations in conducting objective, systemic analyses of the territorial impact of their activities, offering data-driven solutions to guide more responsible decision-making—particularly in the real estate sector.

Through real-time data, trend analysis, and compliance tools, Regg3 identifies and monitors speculative practices, contributing to the development of fairer housing policies and promoting collaboration between public and private sectors. The goal is to bring housing back to the center of social life—beyond the logic of financial speculation.