
The court decided that the conversion of permanently rented living space into furnished temporary apartments in environmental protection areas requires approval.
AI-generated summary
The Building Code enables municipalities to designate environmental protection areas in order to maintain the composition of the resident population. Changes of use in these areas require approval.
The decision could bring some relief in the capital's tense housing market: The Berlin district of Neukölln may prohibit owners from renting out furnished apartments for a short period of time in a so-called environmental protection area if they were previously rented out permanently. This is a change of use that must be approved, as the administrative court decided. A landlord of 15 residential units had sued.
This does not necessarily have to be granted to the apartment owner, as the apartments with their business model are no longer affordable for households with children and low-income households, for example. Their actions therefore have a “displacing effect” and do not correspond to the objectives of the Environment Protection Ordinance. The apartment owner had argued that her apartments would continue to be used for residential purposes and therefore no environmental protection permit was required.
The building code allows municipalities to designate areas as environmental protection areas. Modernizations or changes of use must be approved there. The municipality may also determine that the conversion of rental properties into condominiums must be approved. There are environmental protection areas not only in Berlin, but in many cities.
The Berlin ruling can still be taken before the Berlin-Brandenburg Higher Administrative Court.
There is no topic that concerns Berlin as much as housing ahead of the House of Representatives elections in September. The problems on the rental market are huge.
AI outlook — possibilities, not facts
Appeal to the Berlin-Brandenburg Higher Administrative Court
Likely · Within months
The Berlin Administrative Court dismissed the lawsuit brought by an owner who rented 15 furnished apartments in Berlin-Neukölln for a limited period of time. The court classified this as a change of use requiring approval because the model could lead to the displacement of the local population.

In an interview, real estate expert Lars von Lackum sees the greatest leverage in the inventory and the use of AI. However, regulation is slowing down the market significantly.

In Singapore's Toa Payoh district, Housing & Development Board (HDB) model apartments, where four out of five Singaporeans live, can be viewed. Depending on the location, a five-room apartment with 110 square meters costs 390,000 Singapore dollars (260,000 euros), although no equity capital may be required when the contract is concluded. The World Bank praises the HDB as the best public housing in the world.

The supply of furnished apartments is increasing sharply in major German cities. Contrary to common misconceptions, the same termination rules usually apply to these apartments as to unfurnished ones, provided they are not part of the landlord's apartment.

Tenants in the Nordend district in Frankfurt are protesting against the installation of supports to secure dilapidated ceilings and fear that the owner Aberdeen wants to demolish the houses. The company is currently only planning restructuring measures.

In major German cities such as Munich and regions such as Sylt, land values have been falling since the interest rate turnaround in 2022. Despite the decline to the 2018 level, prices for residential property remain largely stable due to the ongoing shortage of living space.