The corona virus has caused considerable damage to the commercial property market. However, the housing market is largely immune. Appreciation for one’s own four walls has increased during the corona crisis and, in view of attractive financing conditions, is ensuring that purchase prices continue to rise sharply. The rise in residential rents has, however, slowed down. According to the recently published F+B-Wohn-Index, rents under new contracts fell by around 1 percent in the third quarter compared with the previous three months. Alongside the recession and increased unemployment, the improved supply of new housing and the substantial rise in rental levels are likely to have a dampening effect. However, rather than the decline in rents, the regulatory virus could become a risk for the housing market. Instruments such as the rent brake have been introduced to alleviate the consequences of the tight housing markets. However, they have had little effect, because…
