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Berlin Parties Seek €16 Billion Limit on Housing Compensation

The proposal targets private firms with at least 10,000 Berlin apartments. The parties aim to submit a bill in mid-2028.

Updated 2 min read
Residents enter an apartment building on a Berlin street under overcast skies. (AI-generated image / EconoTimes)
Residents enter an apartment building on a Berlin street under overcast skies. (AI-generated image / EconoTimes)

The Greens, Die Linke and the Social Democratic Party (SPD) propose putting major private landlords’ Berlin apartments in public ownership, with compensation limited to €16 billion if city finances permit.

Their Oct. 17 exploratory paper sets out a position for coalition talks, not a law. The compensation limit depends on Berlin’s ability to bear the expense even if financing conditions worsen. The proposal gives no citywide total for the apartments that might be transferred.

The plan would apply to private companies holding at least 10,000 apartments in Berlin, while allowing each to keep 10,000. Cooperatives and public-benefit organizations would be exempt. Apartments built after Jan. 1, 2021, would also be excluded.

Tenants would participate in managing homes brought into public ownership. The parties also propose that those homes’ average starting rent be no higher than the former owning company’s average rent at the time of transfer.

The parties cite Article 15 of Germany’s Basic Law, which allows property to be brought into common ownership through legislation that specifies compensation. Berlin would have to pass a law before any apartments could change hands under the plan.

A 2021 Berlin referendum showed support for a broader measure: 57.6% of participants favored drafting a law that would cover private companies owning more than 3,000 apartments. That vote did not transfer any property. The new proposal sets a higher threshold for companies.

Adler Group S.A. reported 17,455 Berlin units at the end of 2025. Its count includes ground-floor commercial space, so the figure does not establish how many apartments, if any, would meet the proposed criteria.

On Monday, the Berlin Greens voted to begin coalition talks, with 43 of their 45 delegates in favor. The Berlin SPD state executive board also approved talks, the party announced. Die Linke’s party congress has yet to decide whether to proceed.

The parties plan to work out financing in 2027, then submit a bill to Berlin’s parliament in mid-2028. If passed, the law’s transfer provisions would take effect one year after promulgation.

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