Business · Companies · 1 hr ago
Berlin housing takeover plans unsettle property investors
Berlin's left, Green and Social Democratic parties are considering taking large landlords' homes into public ownership.
The plan would affect private landlords with more than 10,000 homes in the German capital, including Vonovia, which owns about 138,000 there.
The parties propose a €16 billion limit on compensation, though the amount companies would receive is disputed.
The proposal follows a non-binding public vote five years ago in favour of large-scale takeovers, and Die Linke became the strongest party in Berlin's September election.
Some investors say the plans have made them wary of buying in Berlin, while others expect the proposal to fail and remain interested.
Heimstaden says it no longer sees Germany as a place to invest, while Vonovia says it will complete 1,000 homes under construction in Berlin.
The plans are not yet law, and the shape of Berlin's next government is uncertain.
If the three parties form a government, they aim to draft a bill by mid-2028, and a legal fight is likely.
Berlin’s proposed transfer of large landlords’ housing into public or community ownership is raising concern among property investors.
The plans would affect private landlords with more than 10,000 homes in the city, with holdings above that threshold transferred.
The parties’ exploratory paper caps compensation at €16 billion; one report says a bill is planned for 2028, while another says the parties aim to draft one by mid-2028.
Investors’ responses are divided, with some still seeking opportunities in Berlin and others holding back.
Vonovia, which owns about 138,000 homes in Berlin, could face a large accounting loss if compensation were below market value.
- Who
- Berlin’s proposed plans involve large private housing companies and landlords; Vonovia would be among the most affected.
- What
- The plans would transfer holdings above 10,000 homes into public or community ownership, with compensation capped at €16 billion.
- When
- A bill is planned for 2028; one report says implementation would follow the next year.
- Where
- Berlin, Germany.
- Why
- The Left, Greens and SPD say the plans would put large landlords’ housing into community ownership; the initiative cited housing scarcity and high costs.
Supporters of the transfer plans
Opponents, including Vonovia and the CDU’s Stefan Evers
Ownership
Supporters of the transfer plans
The Left, Greens and SPD propose transferring holdings above 10,000 homes into community ownership.
Opponents, including Vonovia and the CDU’s Stefan Evers
Vonovia says it considers the coalition proposal unconstitutional; Evers rejects the transfer plans.
Compensation
Supporters of the transfer plans
The parties propose a total compensation limit of €16 billion.
Opponents, including Vonovia and the CDU’s Stefan Evers
Vonovia and other companies argue compensation should be at market value.
Berlin voters called for large-scale expropriation of property companies in a non-binding referendum.
Die Linke became the strongest party in Berlin’s House of Representatives election, according to NZZ.
The Left, Greens and SPD said they want to turn their plan into a draft law by this point.
The Handelsblatt report says the law is planned for this year, with implementation the following year.
- Proposed threshold
- 10,000 homes per private landlord in Berlin
- Compensation cap
- €16 billion
- Vonovia homes in Berlin
- About 138,000
- Vonovia Berlin property value
- €23 billion
- Heimstaden homes in Berlin
- 20,000
3 sources
What people are saying
Capital is shy.
Of course, I believe that you cannot invest in Germany if you make laws like this.
Our commitment to the location remains.
If we have the choice, all other things being equal, of buying somewhere other than Berlin, then we would do that.