New housing law in Berlin to restrict Airbnb and similar platforms

From May 1, new regulations will come into effect that restrict private property rentals through Airbnb and similar online platforms, by imposing heavy fines of up to €100,000 in an attempt to help cool the housing market. These measures have been taken as Berlin is worried that the growing trend to let out properties on sites such as Airbnb has limited the property supply and driven up rents. Rents increased 56% between 2009 and 2014. It is more profitable for people to rent out their property for short holiday lets instead of having long-term tenants. Airbnb's popularity has also affected the hotel industry in Berlin, which has become one of Europe's top travel destinations. 

BERLIN: Berlin from May 1 began restricting private property rentals through Airbnb and similar online platforms, threatening hefty fines in a controversial move meant to keep housing affordable for locals.

The German capital fears that the growing trend of people letting out apartments to tourists through sites such as Airbnb, Wimdu and 9Flats is cutting into a limited property supply and driving up rents.