Berlin’s battle over resi rents heats up with referendum call

With a rise in rent provokes anger in Berlin, some residents are hoping to put the squeeze on private landlords through a city referendum. Voters will be asked to support a plan to “socialize” around 200,000 flats most of which are owned by Deutsche Wohnen, Berlin’s biggest residential Landlord. Support for the plan has grown amidst gentrification driven by rapidly rising rental rates pushes out middle class Berlin residents. “We, tenants of Berlin, are under attack from greedy property companies that seek maximum profit with minimum effort,” said Michael Prutz, an activist leader behind the referendum move. The referendum must collect 20,000 signatures to make it onto the ballot for next month. Whether or not the it is held, investors and property companies have become increasingly concerned by the anti-landlord rhetoric that’s beginning to swing the public mood. “Everyone knows that a step like that would completely burn Germany’s reputation as a stable business environment,” said Jörg Schwagenscheidt, the head of PMM Partners.