Politics · Germany · 5 hrs ago
Berlin parties propose spending €16 billion to take over 160,000 homes
Berlin’s SPD, Greens and Left party propose taking over about 160,000 homes for an estimated €16 billion.
Left party leader Ines Schwerdtner says the city would borrow the money and use rental income to repay the loans.
One calculation says average rents would need to rise from about €8 to €10.40 per square metre, or €11.60 if interest rates reached 5%.
A study cited by Schwerdtner gives a lower compensation estimate of €13.5 billion for about 210,000 homes and says repayment could take 40 years.
The takeover plan would not build new homes, while a housing industry group estimates that €16 billion could instead fund about 78,000 new homes on public land.
The group also questions whether €16 billion would be enough to pay for the takeovers.
A court would ultimately decide the compensation, Schwerdtner says.
Berlin’s SPD, Greens and Left party propose spending €16 billion to take over around 160,000 homes.
Left party leader Ines Schwerdtner says the compensation would be financed with loans and repaid through rental income.
The article reports that interest alone could mean annual loan payments of €640 million at 4% interest or €800 million at 5%.
The Berlin-Brandenburg housing association says the same €16 billion could build around 78,000 homes on public land.
- Who
- Berlin’s SPD, Greens and Left party propose the plan. Left party leader Ines Schwerdtner has defended its financing.
- What
- The parties propose spending €16 billion to take over around 160,000 homes.
- When
- The proposal was reported on October 19, 2026.
- Where
- Berlin, Germany.
- Why
- The parties describe the plan as nationalisation and a way to bring about a housing improvement; the sources give no more specific reason.
Berlin SPD, Greens and Left party
Berlin-Brandenburg housing association
Financing
Berlin SPD, Greens and Left party
Schwerdtner says loans would fund compensation and rental income would repay them without rents rising sharply.
Berlin-Brandenburg housing association
The article reports that servicing the debt and other costs could require higher rents.
Use of €16 billion
Berlin SPD, Greens and Left party
The parties propose using the money to take over around 160,000 homes.
Berlin-Brandenburg housing association
The association says the money could instead build around 78,000 homes on public land.
This story does not have a timeline yet.
- Proposed spending
- €16 billion
- Homes targeted
- Around 160,000
- Loan payments at 4% interest
- €640 million a year
- Loan payments at 5% interest
- €800 million a year
- Alternative construction estimate
- Around 78,000 homes on public land
What people are saying
Through loans.
The rental income will bring back the 16 billion that are now estimated, without rents rising sharply.
Ultimately, it will be decided by the court.