While the case is not yet legally binding as it is subject to appeal, the decision could have wide-ranging consequences for the controversial rent cap (Mietendeckel).
Despite receiving the support of Berlin's state parliament, the law is opposed by Germany's federal government who argue that regulating housing costs is a federal rather than a state matter.
However Berlin's Tages-Spiegel newspaper reported on Saturday that the Berlin Landgericht (Regional Court) found the rule to be consistent with the German constitution.
(article continues below)
See also on The Local:
The court did however rule that the law’s retrospective application – the law was passed in February but was drafted to apply from June 2019 – was illegal.