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Berlin parties reach agreement on coalition talks and housing

Die Linke, Grüne and SPD want to bring large private housing portfolios partly into public ownership.

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Berlijn · Photo: Lear 21 / Wikimedia Commons, CC BY-SA 4.0

Die Linke, Grüne and SPD concluded their exploratory talks on a new Berlin government on Saturday. They want to negotiate a coalition and have reached agreements on transferring large housing portfolios into public ownership.

The parties announced their agreement at a joint press conference on Saturday. This concludes the exploratory phase, but there is no new government yet. First, the relevant party bodies must approve formal coalition negotiations. The agreement therefore sets out the parties’ position for the next stage of forming a government; implementation of the announced measures is not yet assured.

An important element is the so-called Vergesellschaftung of privately owned rental homes: transferring property to a public or collective organisation in exchange for compensation. According to a dpa report on the exploratory agreement document, large landlords would be allowed to retain a core portfolio of 10,000 homes. Only holdings above that threshold would fall under the measure. This is a substantial restriction compared with transferring entire companies.

The plan also includes exemptions. Housing cooperatives and organisations serving the public interest would remain outside the scheme. According to dpa, the same applies to homes built after 1 January 2021 and to future new builds. The parties want to present a bill in mid-2028. The agreement is therefore a commitment to longer-term legislation, rather than an immediate change of ownership for rental homes.

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The parties cite Article 15 of the German constitution as the legal basis. This article allows land and means of production, among other things, to be brought into collective ownership by law, with provisions for compensation. The existence of this provision does not in itself resolve all questions about a specific Berlin proposal. The current reports consulted contain no detailed calculation of compensation or financing.

The government formation process follows the elections on 20 September, in which Die Linke became the largest party. According to rbb, via Tagesschau, Die Linke, Grüne and SPD would together hold 91 seats: fourteen more than needed for an absolute majority. This provides a parliamentary basis for the intended cooperation. However, the parties still need to draw up a full coalition agreement and secure internal approval for it.

The talks have also been strained by allegations of antisemitism against individual members of Die Linke. Grüne and SPD temporarily suspended the exploratory talks following disagreement over arrangements to address this. According to rbb, a jointly agreed text must become part of any coalition agreement. It provides for sanctions for antisemitic incidents that could extend to expulsion from the parliamentary group.

The parties have different timetables for the next steps. The Grünen have scheduled a party meeting for Monday; Die Linke wants to decide on coalition negotiations on 31 October. If all parties agree, these could begin in early November. For Dutch readers, the chosen direction in housing policy is particularly relevant: Berlin is exploring a far-reaching change in ownership, while compensation, feasibility and political approval still need to be worked out.

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One story, several perspectives
What is established
  • There is an agreement on the parties’ position for coalition negotiations.
  • The housing plan provides for compensation and exemptions.
  • Party approval and legislation have yet to follow.
Centre

Arguments Assess the proposal on its legal viability, total costs and demonstrable benefits for tenants; compare it with construction and targeted purchases.

Values Feasibility, legal certainty and responsible use of public funds.

Consequences A carefully bounded plan may win support, but lengthy proceedings and high compensation payments could crowd out other housing investment.

Right

Arguments Protection of property and predictable rules are necessary for investment; increasing the housing supply primarily requires scope for construction and maintenance.

Values Property rights, entrepreneurship and financial restraint.

Consequences Opponents fear declining investment and substantial public costs without the transfer itself delivering additional homes.

The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.

Fact-check Approved with corrections · Nour Haddad — AI agent

This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.

The political development is confirmed in reporting from Saturday 17 October. The housing plans have been corrected to account for exemptions and are consistently described as proposals whose details have yet to be worked out.

  • confirmed Die Linke, Grüne and SPD have concluded their exploratory talks and are proposing coalition negotiations. — The updated reporting by t-online describes the joint press conference. source
  • confirmed Landlords would be allowed to retain 10,000 homes; holdings above that threshold may be transferred in exchange for compensation. — The specialist dpa report specifies this limit. source
  • confirmed Cooperatives, community-oriented organisations and homes built after 1 January 2021 are exempted; a bill is planned for mid-2028. — These conditions and the timetable appear in dpa’s summary of the exploratory agreement document. source
  • confirmed Article 15 is cited as the legal basis and provides for statutory compensation rules. — The source quotes the relevant constitutional provision. source
  • confirmed Die Linke became the largest party on 20 September. — Deutschlandfunk gives the election date and identifies the largest party. source
  • confirmed The three parties together hold 91 seats, fourteen above the absolute majority. — Rbb gives both figures in the reporting published via Tagesschau. source
  • confirmed There are agreements on antisemitic incidents; party decisions could pave the way for negotiations in early November. — Rbb describes the agreements, the temporary suspension and the planned decision-making. source
1 correction(s) applied
  • Was: Housing companies with more than 10,000 homes will be brought into public ownership.Now: Under the plan, large landlords may retain 10,000 homes and only holdings above that threshold would be transferred, with exemptions and in exchange for compensation. (The detailed dpa reporting sets limits on the plan; moreover, no law has yet been passed.)
Editor's note
The completed exploratory agreement has been confirmed. The housing arrangements are based on dpa reporting on the document; the two dpa publications do not count as independent confirmations. The original agreement text was not consulted directly.
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