Airbnb: New law passed makes it illegal to rent out entire apartments in Berlin

If you'll be visiting Berlin, Germany anytime soon and holding out hopes to rent an entire apartment via Airbnb, you'd have to make different arrangements as it has become illegal to do this in the region.

In a bid to curb a rise in housing prices, AP reports that the law called Zweckentfremdungsverbot ("prohibition of improper use") was passed in 2014 and went into effect on May 1st.

Thus,  Berliners renting out their full apartments on Airbnb can face a fine of up to €100,000 (no less than N23 million).

However, homeowners can still rent out individual rooms on Airbnb and similar property listing sites, but renting out entire homes or apartments is now forbidden across Berlin.

Speaking on the development, Andreas Geisel, Berlin's head of urban development, said the law is "a necessary and sensible instrument" to keep housing affordable.

Though rents in Berlin increased by 56% between 2009 and 2014, they are still low relative to other European cities.

Meanwhile, officials say Airbnb and similar sites have helped fuel that rise as more Berliners use their apartments exclusively for short-term rentals, thereby exacerbating the city's housing shortage.

Berlin has therefore called on residents to anonymously report people who violate the new law.