Berlin housing expropriation becomes coalition issue
The left-wing election winner wants to socialise large housing companies, while the SPD and some voters remain cautious.
The dispute over socialising large housing companies is central to the formation of a new administration in Berlin. Die Linke wants to turn the outcome of a 2021 referendum into policy, but potential coalition partners and a recent poll raise questions about its feasibility and support.
Die Linke won Berlin’s state elections on 20 September and made tackling the housing crisis its central theme. The party wants to bring large private housing companies under public control. According to Deutsche Welle, the plan was linked during the campaign to a promise to implement the proposal from the 2021 referendum.
In that referendum, 57.6 per cent of participants voted for a proposal to socialise housing companies with more than 3,000 homes. The vote was not legally binding. A commission subsequently appointed by Berlin’s administration concluded, according to DW in 2023, that socialisation was legally possible, but that the financing still needed to be worked out.
The practical scale of the plan is disputed. DW cites estimates of approximately 240,000 to 270,000 homes that could come into public ownership. That range depends on which companies and homes fall under the scheme. Compensation for the companies involved and the way the homes would be managed have also not yet been definitively established.
The potential coalition partners are not all on the same page. The Greens are closer to implementing the referendum, while there is more opposition to expropriation within the SPD. The party seeking to form an administration in Berlin must therefore combine the issue with agreements on the budget, housebuilding and rent policy.
A poll by Infratest dimap cited by Tagesschau after the election painted a different picture from the referendum result. According to the poll, 51 per cent opposed expropriating large private housing companies and 37 per cent supported it. Among Die Linke supporters, 72 per cent were in favour; among CDU supporters, 81 per cent were opposed.
The issue is relevant to Dutch readers because Berlin is a prominent European example of the clash between tenant protection and property rights. The election result gives Die Linke political influence, but does not yet produce a law. The forthcoming coalition talks will show whether the party can turn its core promise into a workable and funded policy.
One story, several perspectives
What is established
- A non-binding referendum in 2021 backed the socialisation of large housing companies.
- Die Linke wants to implement that result and needs coalition partners to do so.
- The legal feasibility has been examined, but financing and implementation have not been definitively arranged.
- A recent poll showed less support than the referendum.
Left
Arguments Housing is a basic need and, in this view, large property companies have too much influence over rents. Public ownership can remove homes from market logic and give tenants greater security.
Values Affordability, collective ownership and tenant protection.
Consequences Socialisation could limit housing costs for many households, but would require major public investment and transparent management.
Centre
Arguments Berlin should make housing more affordable through a combination of housebuilding, rent regulation and public housing. Expropriation may be legally possible, but only after a credible analysis of the costs and implementation.
Values Practical feasibility, legal certainty and gradual improvement.
Consequences A compromise could deliver results more quickly, but might dilute the substance of the referendum result.
Right
Arguments Expropriation undermines property rights, costs public money and can deter investors. More building and better spatial planning are, in this view, more sustainable solutions to high rents.
Values Property, market forces, investment certainty and budgetary discipline.
Consequences Abandoning expropriation limits financial risks, but may offer tenants little immediate relief if construction output remains low.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The political stakes and the main figures have been confirmed by Deutsche Welle and Tagesschau. The text presents estimates and coalition options as uncertain and makes no judgement on whether the plan is desirable.
- confirmed In Berlin’s 2021 referendum, 57.6 per cent voted for the socialisation of large housing companies. — Deutsche Welle gives this percentage and the threshold of more than 3,000 homes. source
- confirmed A Berlin commission concluded in 2023 that socialisation was legally possible, but that budgetary questions remained open. — This is described in Deutsche Welle’s background article. source
- confirmed A poll reported 51 per cent opposed and 37 per cent in favour of expropriation. — Tagesschau cites a post-election poll by Infratest dimap. source
- confirmed According to estimates, the possible scale of the plan is between approximately 240,000 and 270,000 homes. — Deutsche Welle gives both estimates and makes clear that the scale depends on how the scheme is defined. source
Editor's note
The referendum result, the legal commission and the poll can be found in two independent public sources. The eventual coalition, legislation and financing remain uncertain.Sources
- Could Berlin expropriate large real estate companies? — Deutsche Welle
- Mehrheit gegen Vergesellschaftung großer Immobilienkonzerne — Tagesschau
More on this in Dutch media
- AD — „berlijn woningmarkt”
- de Volkskrant — „berlijn woningmarkt”
- RTL Nieuws — „berlijn woningmarkt”