In Berlin only 1.7% of housing is empty, of which 41% is because of ongoing modernisation, 31% because of renter currently changing and 12% because of mold or other damages.

So only approx. 0.27% of housing is empty in hope of higher prices or because of other reasons. [1]

The demand is real. No living space is created by this policy. Much will not be build because of it.

[1] https://www.morgenpost.de/berlin/article214572349/Nur-1-7-Pr...

I have not met anybody so far who thinks wealthy foreigners should be able to use real estate to launder money, store value, hide wealth, or otherwise not use real estate for what it is meant for, that is to say as places for people to live, play, or work.

1. Demand is increasing faster than supply can keep up

2. Supply is shrinking faster than demand falls

For housing in large cities, it's usually (1) above.

Easy money policies stoke artificial demand by making money cheaper (lower interest rates). That makes speculation in housing easier than it otherwise should be. Don't blame "speculators." They are simply responding to conditions created by central banks and the fiat money system.