It's more complicated than that. They have regulations but they work differently. The Basic Law for Land regulates against speculation and profiteering off of r

It's more complicated than that. They have regulations but they work differently. The Basic Law for Land regulates against speculation and profiteering off of rises in land values (which are arguably the most capitalist bits of western housing markets!) and specifically privileges public use over private interests as well as other "keeping with the surroundings" style provisions which are familiar in the UK/Europe as well. So I'd argue it's more of a social market than a free market as such. Although I can see how you'd consider it more of a free market than in the US with its zealous zoning rules.