New German coalition could cap housing rents

Germany could see the introduction of housing rent controls if a new coalition government consisting of Chancellor Angela Merkel's Christian Democratic Party (CDU) and the Social Democrats (SPD) comes to power.

A rental cap, coupled with anticipated new requirements to make homes more energy-efficient, could hit the profits of residential property investors in Germany, experts warn.

Shares in residential property companies fell immediately following the election outcome in Germany, which saw the long-reigning liberal Free Democrats exit the government, in a sign that are property investors are getting jittery.

'The German apartment market is not the sector investors want to be in over the coming years,’ commented Thomas Beyerle, head of research at real estate company IVG in Bonn.

Click on the link below to read our full analysis of the German election outcome on the property sector.