Berlin's draft lay may tighten cap on rents

Shares in German property companies fell on Monday after media reported the Berlin city government plans a tougher-than-expected cap on rents, below what is currently charged in prime locations. Shares in Deutsche Wohnen -- the German capital's biggest landlord -- were down 3.6% at 0756 GMT while those of DAX-listed Vonovia shed 2%. Other real estate stocks were down as well. "Leaked details for the Berlin rent freeze draft law show that this might end up rather as a rent cut than a rent freeze," analysts with Jefferies said in a note.