Berlin Short-Term Rental Restrictions 2026 – What Companies hiring expats Should Know
As in many major European cities, Berlin's housing market is under intense pressure. Average asking rents in the German capital rose by 12.0 percent in 2024 to €15.79 per square meter, marking the highest rent dynamics among Germany's top seven cities. Over the past decade, rents in Berlin have increased by a striking 107 percent, reaching €18.29 per square meter according to the Federal Institute for Building and Urban Affairs. For comparison, Munich remains Germany's most expensive city at €22.96 per square meter, followed by Frankfurt at €17.55 per square meter.
Discover how Berlin’s 2026 short-term rental restrictions impact international employee relocation and HR planning. Learn strategies for securing compliant long-term rentals and see our Berlin Relocation Guide for detailed insights covering housing options, legal requirements, and move-in support.
In response to this, Berlin authorities are implementing measures to limit the rental of furnished short-term apartments in designated protection zones. The districts of Friedrichshain-Kreuzberg, Neukölln, Charlottenburg-Wilmersdorf, and Pankow are leading these efforts, affecting approximately 1.2 million residents—roughly one-third of Berlin's population. For companies planning international assignments, understanding these restrictions is crucial, as discussed in our relocation guide.
What are the Berlin short-term rental restrictions?
Since 2014, Berlin has had in place the Zweckentfremdungsverbot‑Gesetz (ZwVbG), a law that prohibits using residential housing for purposes other than permanent living — unless a special permit is granted. Under this law and its implementing regulations, converting an apartment into a short-term furnished rental (or “holiday flat”) requires prior authorization. For HR teams hiring from abroad, understanding the housing market for expats is crucial to effectively planning relocations, ensuring employee satisfaction, and securing compliant, suitable accommodation. As long as such a permit is missing, the apartment must not be offered as short-term accommodation. Nevertheless, many apartments in Berlin have been advertised and rented as short-term units — despite the strict legal framework. A 2025 report found that although there are an estimated ~38,000 holiday- or short-term rental apartments in Berlin, only around 600 have ever been legally approved since 2016.
More recently, several Berlin districts have moved from mere tolerance to active crackdowns. The district Neukölln, for example, has announced that it will ban furnished short-term rentals in so-called “Milieuschutzgebiete” (neighborhoods under social-protection zoning), citing risks of displacement and rising rents for long-term residents. According to the district office, temporary furnished rentals often serve people willing to pay significantly more (sometimes up to €3,500 per month for an 80 m² apartment), which they argue contributes to shrinking affordable long-term housing. Other districts and even parts of the city administration are reportedly exploring similar restrictions — indicating that this is not just a local initiative, but a broader regulatory direction for the city.
Why Berlin short-term apartments became so widespread — and why authorities act now
The popularity of short-term furnished rentals, especially among newcomers and expats, is grounded in the reality of Berlin’s tight housing market:
Many arriving in Berlin for work — particularly international employees — need immediate, flexible housing so they can secure their tax id. Short-term rentals provide a ready solution, since long-term rentals are often hard to secure quickly.
These furnished rentals are often marketed as “temporary living” or “serviced apartments,” which can allow landlords to bypass usual rent-control limitations by charging a premium for furniture and flexibility. In some reported cases, landlords demanded as much as €3,500 per month for 80 m² when rented as a short-term furnished flat.
This puts pressure on the overall housing supply: when many apartments are diverted to short-term use, fewer remain available for regular long-term rentals — contributing to rising rents and scarcity. Authorities argue that this distorts the housing market, displaces long-term residents, and reduces affordable housing stock.
Given this background, regulatory crackdown is seen by local governments as a necessary step to protect long-term affordability and preserve the social fabric of neighborhoods — especially in so-called Milieuschutzgebiete.
What do the Berlin short-term rental restrictions mean for Expats and Companies planning relocation to Berlin in 2026?
For expats, international hires, and companies, the tightening of Berlin's short-term rentals carries practical implications:
Fewer available short-term rentals: Expats arriving for a limited period or in transition may find it harder to secure legally compliant short-term furnished accommodation. The pool of acceptable short-term apartments may shrink fast if more districts implement bans.
Increased demand — and competition — for long-term rentals: People who previously relied on short-term rentals may now need to look directly for long-term apartments. This surge in demand could tighten competition, leading to longer search times or higher rents for long-term housing.
More administrative and legal due diligence required: When using short-term rentals, companies and expats must carefully verify that the rental is compliant with the ZwVbG (i.e., properly permitted). Without proper permits, such rentals risk being invalidated — creating instability for tenants.
Longer-term planning becomes more important: The shift calls for enhanced planning from relocation managers and HR departments. Instead of viewing short-term furnished flats as a default first stop, firms may need to secure long-term housing from the beginning — or engage relocation professionals to handle uncertainty in the market.
Possible Rental Market Shifts Berlin 2026: What Could Improve — and What Remains Uncertain
While the reduction of short-term furnished flats poses challenges, it also carries potential benefits for Berlin’s long-term rental market:
Some of the apartments previously used as short-term rentals may be returned to the long-term housing offers, increasing supply. Indeed, after interventions by district authorities, thousands of former holiday flats have reportedly been reintroduced as regular rentals.
In the long run, this could help moderate rent increases and improve access to more stable, less document-heavy, long-term accommodation — benefits for both locals and long-term expats.
On the other hand, the transition period might be difficult: demand may spike in the long-term segment, competition could increase, and pricing might remain elevated until supply catches up.
Hence, while short-term apartments in Berlin can become less common, the broader effects on the market will likely play out over months or years.
Strategies for HR and Expats to Secure Housing in Berlin 2026
Given the rapidly evolving regulatory environment around Berlin short-term rentals, companies relocating staff to Berlin — as well as expats themselves — should keep the following points in mind:
Start the housing search early, ideally before arrival, to avoid being left with very limited legal short-term options. Short-term rentals should no longer be relied on as a guaranteed solution.
Consider long-term rentals from the beginning, even if the initial plan is to stay only temporarily. The availability of short-term furnished options may continue to decline.
Use professional relocation services that are familiar with Berlin’s housing regulations. relokate can support you throughout the search and onboarding process to ensure full compliance and a smooth transition.
Be flexible regarding location and housing type — consider less central neighborhoods, partly furnished units, or longer lease periods where appropriate.
Verify the legal status of any apartment before signing: ensure that furnished or temporary rentals have the required permits and are compliant with Berlin’s Zweckentfremdungsverbot regulations.
Consider a hotel as an interim solution if immediate, compliant housing is difficult to secure.
Need Help Navigating Housing in Berlin? Let relokate handle it.
The new restrictions on Berlin short-term apartments make relocation more complex. However, relokate offers full support for HR teams, from housing search and legal compliance checks to move-in assistance and neighborhood orientation.
If you are relocating staff to Berlin
👉 Contact relokate today and let us secure compliant, reliable housing for your employees in Berlin
Explore More City Relocation Guides
For companies and expats planning international relocations, housing regulations and rental markets vary across German cities. Check our detailed Relocation City Guides for Berlin, Hamburg, Frankfurt, Munich, and Stuttgart to learn about local housing, permits, and move-in processes:
These guides provide practical tips for HR teams and expats navigating housing, permits, and neighborhood selection in each city.
Legal Disclaimer: The information provided here and on relokate’s website is for general informational purposes only and does not constitute legal advice.