Berlin Extends Rent Control Until Year-End – What’s Next?

A Clear Signal for Tenant Protection

On April 15, 2025, the Berlin Senate made an important decision: the Regulation on Permissible Rent Levels at the Start of Tenancy – commonly known as the Rent Price Brake – has been extended until December 31, 2025. This means that throughout Berlin, in areas with a tight housing market, rents for new leases may not exceed more than ten percent above the local comparative rent (berlin.de).

Urban Development Senator Christian Gaebler (SPD) emphasized that this step sends a clear message to tenants. At the same time, he urged the federal government to act: without a nationwide extension of the Rent Price Brake from January 2026 onward, the legal protection would lapse, and excessive rents could no longer be effectively challenged (berlin.de).

If the State is leaning toward tenant protection, how will investors respond — and could this reshape the landscape of property investment?