Politics · Germany · 4 hrs ago
CDU economic council says Berlin could build up to 205,000 homes
Berlin's Left party, Greens and Social Democrats have agreed in talks to bring about 160,000 homes owned by large property companies into public ownership.
The plan would apply to companies with more than 10,000 homes, and the proposed compensation is estimated at 16 billion euros.
The CDU's economic council says that sum could instead help fund up to 205,000 new homes if the state covered only one-third of building costs.
Its model estimates that spending the full amount on construction could produce about 51,000 homes using standard methods, or 68,000 with simpler building standards.
The council and Germany's construction industry oppose the takeover plan, arguing that it would not create new homes or improve existing ones and could deter investors.
The figures are estimates, and the parties' agreement concerns bringing existing homes into municipal ownership rather than building new ones.
Berlin could build up to 205,000 additional homes if it used money earmarked for compensating property companies to support construction, according to a model by the CDU Economic Council.
The model estimates that investing €16 billion directly in construction could fund about 51,000 homes using conventional methods or about 68,000 with simplified building standards.
The calculation assumes the state would cover only one-third of construction costs to reach the higher total.
The proposal contrasts with plans by the Left, Greens and Social Democrats to bring about 160,000 homes into public ownership.
The CDU Economic Council and Germany’s construction industry criticized the plans to bring large housing companies under public ownership.
- Who
- The CDU Economic Council made the calculation. The Left, Greens and Social Democrats have agreed on plans to bring housing companies under public ownership.
- What
- The council says Berlin could enable up to 205,000 additional homes by using €16 billion to subsidize construction.
- When
- The article was published on 19 October 2026. The three parties reached their agreement on a Saturday.
- Where
- Berlin, Germany.
- Why
- The council argues that using the money to support new construction could create more homes than bringing existing properties into public ownership.
CDU Economic Council and German construction industry
The Left, Greens and Social Democrats
Use of €16 billion
CDU Economic Council and German construction industry
The money could support construction of up to 205,000 additional homes.
The Left, Greens and Social Democrats
The parties agreed to bring about 160,000 homes into municipal ownership.
Effect of public ownership plans
CDU Economic Council and German construction industry
The council and construction industry say the plans could harm construction and investment and would not create new homes or lead to renovations.
The Left, Greens and Social Democrats
The parties’ agreement includes bringing housing companies with more than 10,000 homes under public ownership.
The Left, Greens and Social Democrats reached an agreement in exploratory talks that included bringing housing companies with more than 10,000 homes under public ownership.
The CDU Economic Council presented a calculation comparing the cost of compensation with the potential to support new construction.
- Proposed compensation sum
- €16 billion
- Homes targeted for public ownership
- About 160,000
- Direct conventional construction estimate
- About 51,000 homes
- Construction with simplified standards
- About 68,000 homes
- Maximum estimate with one-third cost support
- Up to 205,000 additional homes
- Threshold for companies in the parties’ agreement
- More than 10,000 homes
1 source
What people are saying
Since last weekend it has been clear: The Left, supported by the Greens and SPD, is daring to pursue a systemic break in the capital: more than 40 years after the failure of real existing socialism, expropriations are again being seriously considered in Germany.
The nationalization of housing stock is counterproductive and harmful to construction activity. Neither will new homes be built this way, nor will they be renovated.