Published by The effects of environmental protection are not validated enough.
In Berlin, although more and more protected areas are designated, so that a significant part of the inner city area is now affected by it (see current map here). Whether that actually helps or does not harm the city's development and its inhabitants is rather unclear. Examinations about it, perhaps even with a scientific claim, are missing.
The Association for the Promotion of Home Ownership in Berlin eV tries to remedy this situation, and has the IW Cologne with a Expert opinion commissioned, which is now available. In it, the diverse effects of the Berlin environmental protection areas are discussed from an economic perspective. On the basis of a detailed description of the housing market situation in Berlin and its urban districts, the social costs and benefits associated with the instrument are examined.
For some households, an advantage, but overall a great disadvantage.
The analysis by IW Cologne shows that conservation statutes represent a very strong intervention in the market and property rights. This will benefit those households who are currently provided with affordable apartments there. Households that have to take care of themselves in the market, however, are disadvantaged. This applies both to households looking for an apartment within the district or to Berlin, as well as to immigrants moving to the city.
Specifically, the IW Cologne states:
- All measures of the Milieuschutzes seem like bureaucratic hurdles.
- Investment in housing stocks is lower than in other areas. As a result, the preservation of buildings suffers, the attractiveness decreases.
- There is a risk that less new living space will be created. The tight Berlin housing market can recover more difficult.
- There is less investment in barrier poverty.
- The far-reaching modernization bans counteract climate protection goals.
- The ban on conversion means that opportunities for home ownership are taken. This is especially important because Berlin has a very low home ownership rate with 18 percent for a German city.
Suggestions for an alternative policy
Instead of stopping the upgrading and attractiveness of some central locations with the help of the establishment of environmental areas, the IW Cologne proposes a different policy:
- Berlin should concentrate on using the city's additional revenue generated by the immigration and the rise in real estate values to improve the social and technical infrastructure.
- The aim should be a housing policy, which allows a co-ordination of municipal politics and administration with the real estate industry and the local citizens.
- Together with local investors, a housing offensive should be initiated together.
- If, on the other hand, it were possible to revalue hitherto rather difficult parts of the city and to further improve the connections to public transport, alternative residential locations would be created for all sections of the population.
- Selective measures for some neighborhoods are counterproductive. Better is a coordinated and long-term policy for the entire city to create as many good residential location and promote the growth and prosperity of the city.
Book Recommendation
(as paperback here)