consider regulation
The rent cap in Berlin overturned by the Federal Constitutional Court is an example of why it is worthwhile for you as an investor keep an eye on regulation. The supply of rental apartments there had therefore collapsed in the meantime.
Tip: Experts advise renting out for a limited period in big cities in order to be as flexible as possible. This also gives you the option of buying the apartment, if it is empty, after the lease expires. As the conversion of apartment buildings into condominiums has been further restricted by law, investors must expect a further shortage of condominiums.
In particular, locations in which the basic principles of the market economy are not interpreted can ultimately be of interest to you as an investor, since the supply of living space will not increase in these locations. However, if it is accompanied by increasing demand, particularly large increases in value are possible.
Notice: You can read more about rent increases in our article on the subject.