A property owner in Berlin, who was successfully sued by her tenants for the repayment of overpaid rent, has lost her constitutional complaint at the Federal Constitutional Court in Karlsruhe. The court ruled that there was no violation of fundamental rights regarding the tenant protection measure, also known as the 'Mietpreisbremse' or rent cap. This measure restricts rental increases for re-lettings in designated areas in order to address the housing shortage in cities like Berlin.

The challenge was focused on the extension of the rent cap regulation, which was first implemented in 2015 and was extended in 2020 to continue until the end of 2029. The court emphasized the legality of this regulation, which allows state governments to define regions with strained housing markets where rent increases on new leases can be limited to a maximum of ten percent above the average local rents. Berlin, currently identified as such a region, demonstrates the ongoing struggles in accommodating a growing urban population amidst rising housing costs.

This decision reflects broader tensions in Germany's real estate sector where landlords and tenants frequently clash over rental policies. The ruling reinforces the government’s commitment to tenant protections and highlights the judiciary's stance on balancing landlords' rights with the need for affordable housing, further complicating the narrative around property rights in the context of urban development.