Government Regulations

Since January 1, 1993 the “Kommunale Wohnungsverwaltung”, the government-mandated agency that managed these buildings day-to-day —for absentee landlords — was abolished. Owners of restituted property must assume responsibility for day-to-day management and maintenance. This burden is especially severe in light of the poor condition of many properties and the very stringent building codes. This becomes even more difficult if the owner is in the United States or elsewhere.


Environmental Concerns

Local governments have exhibited their own parochial concerns. Many have rejected otherwise beneficial development plans in order to mollify extreme environmentalists — often to the dismay of property owners and developers. In commercial development, there is often the added complication of property contaminated by hazardous waste materials. This depresses prices.

Taxation...