Berlin presents proposals to seize corporate property holdings
Berlin government
sold off huge chunks of its
social housing
stock, the city has presented draft legislation to expropriate corporate
landlords
.
The move is a delayed response to a
successful citywide referendum in 2021
, when almost 58 per cent of Berliners backed a grassroots proposal to force landlords with more than 3,000 flats, to sell their holdings to the city.
The main focus of the vote was Deutsche Wohnen, a listed company with 110,000 flats in the city, though other companies would also be affected.
Back in 2021, Berlin's then city-state government campaigned against a proposal it said would cost the taxpayer billions without creating much-needed new housing.
READ MORE
After the successful vote, city politicians set up a commission to explore the legal concerns. In its final report, the commission said there were none: such an expropriation, while novel, is most likely covered by Article 15 of the Basic Law, postwar Germany's constitution.
This article, never before used, states that 'land, natural resources and means of production may, for the purpose of socialisation, be transferred to public ownership or other forms of public enterprise by a law that determines the nature and extent of compensation'.
Such a drastic step could only be justified, the expert commission said, in a city with a housing crisis of tight supply and spiralling rents – a description which fits the German capital.
Average rents are now rising by 15 per cent year-on-year and running at around €15 per square metre, meaning a 100sq m (1076sq ft) apartment costs €1,500 for rent alone, without running costs.
Property agents say Berlin's real rental prices in many popular areas start at one third above the average.
[
As bad as Dublin? In Berlin's broken rental market, 200 people apply for one apartment
Opens in new window
]
Almost 58 per cent of Berliners backed a grassroots proposal in 2021 to force landlords with more than 3,000 flats, to sell their holdings to the city. Photograph: Tobias Schwarz/ AFP via Getty Images
Some four years after the referendum, the centre-left
Social Democratic Party
(SPD), now junior coalition partner in Berlin's city-state government, has presented a draft bill which proposes taking under state control 'elementary areas of public services'. This need not stop at property: in recent years Berlin has bought the water provider and other utilities privatised 20 years ago in the same budgetary crisis that prompted the social housing sell-off.
While the SPD see their draft proposal as responding to the referendum, allowing property owners sell up or accept public representatives at board level, the proposal has infuriated their centre-right
Christian Democratic Union
(CDU) coalition partners.
One senior CDU official told Berlin's Tagesspiegel newspaper the SPD had 'lost the plot completely'.
Of particular concern to the business-friendly CDU is a clause suggesting housing and other public goods can and should be bought back at 'below-market rates'.
The SPD argues that lower prices are legally justifiable 'given the structural change in the property system in favour of public use'.
In response, the CDU Berlin's general secretary Ottilie Klein summoned up the memory of Berlin's pre-war communist-fascist street battles and postwar property seizures in socialist East Berlin, warning: 'If there is one thing Berlin doesn't need, then it's expropriations and class warfare.'
Property agents say Berlin's real rental prices in many popular areas start at one third above the average. Photograph: Tobias Schwarz/ AFP via Getty Images
The draft proposal will now go for consultations with a view to a final agreement early in 2026, with legal challenges likely as soon as any bill becomes law.
On another front in the cost of living crisis. Berlin's state government has confirmed it is 'discussing and examining extensively' new regulations to outlaw the long-term rental of furnished apartments.
Such dwellings are excluded from regular rental controls, which stipulate that a new rent may not diverge more than 10 per cent above average local rents.
'Loopholes in tenancy law are being exploited for fixed-term and furnished rentals,' said a government spokesman, explaining the move 'and exorbitant sums are being demanded'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
34 minutes ago
- Irish Times
The Irish Times view on the presidential race: contortions and expediency
Less than a week after Mairead McGuinness's shock withdrawal from the presidential election, Fine Gael appears already well on its way to settling on a replacement. Heather Humphreys has established such a commanding lead over Seán Kelly in pledged parliamentary support that the race may effectively be over before a single vote is cast. Kelly, however, may be less inclined to bow out gracefully this time. After all, had he stayed in the contest earlier in the summer, rather than stepping aside for McGuinness, he would by now be the party's standard-bearer. What has followed since McGuinness's announcement has been a study in political flexibility, not to say expediency. Both contenders have been obliged to explain why they now covet a role they had so recently declined. In June, Kelly reflected aloud that he was content in Brussels, invoking John B Keane as he wondered whether he truly wanted to trade Kerry for seven years in the Áras. His conclusion was no. Humphreys, for her part, told RTÉ in May that she had no interest in returning to public life, having retired from frontline politics to spend time with her family. All, it seems, has now changed utterly. READ MORE Fine Gael, which carefully stage-managed McGuinness's uncontested nomination, now benefits once again from having a bench of plausible successors to choose from. The same cannot be said for its rivals. Fianna Fáil and Sinn Féin continue to deliberate, with little sign of consensus around a credible nominee. Their reluctance reflects a more basic problem: neither party has a clear candidate who could avoid the fate of the also-ran. Sinn Féin is reported this week to be edging towards endorsing Catherine Connolly. Should that materialise, and with the route for an Independent nominee narrowing by the day, attention will turn squarely to Fianna Fáil. It has been more than 50 years since the presidency was last contested in a straight two-way contest. It may fall to Micheál Martin to avoid such a narrow choice being presented to the electorate. There are strong arguments for Fianna Fáil to enter the fray. First, it would signal confidence from the State's largest party, which has not contested a presidential election this century. Second, neither Connolly nor Humphreys (assuming she is the Fine Gael nominee) are unbeatable. Neither has been tested in the uniquely unforgiving environment of a presidential campaign. Each is perfectly capable of the sort of verbal slips or missteps that have derailed hopefuls before. If, as some in Leinster House suspect, Martin already has a name in his pocket, the only question now is when he chooses to reveal it.
Irish Times
2 hours ago
- Irish Times
Welsh Rugby Union defends plans to halve number of professional men's teams
The Welsh Rugby Union has recognised the 'hurt and anger' caused by their proposal to reduce the number of professional men's sides in Wales from four to two, but insisted maintaining the status quo is not the 'right thing' to do. Welsh rugby's governing body has produced a radical plan to turn around the game at both club and international level, outlining its ambitions in a 90-page consultation document entitled 'The Future of Elite Rugby in Wales'. There will be a six-week consultation period before the WRU makes a final decision on the plans, and WRU chief executive Abi Tierney has urged people to 'improve on the proposals' and provide 'something fit for purpose for Welsh rugby'. The WRU's proposal to halve its number of four men's professional sides – Cardiff, Dragons, Ospreys and Scarlets – to two will be the biggest talking point in a document which outlined four potential models for the game in Wales. READ MORE It remains unclear whether the two future sides being proposed will be new entities or existing teams, but the two organisations will each have a men's and women's team. Tierney said: 'This is a momentous day for Welsh rugby. No decisions have been made, but we feel based on the analysis this is the strongest (option) yet. 'I know how emotional rugby is in Wales and people will be hurting today, when they think what it could mean potentially for them and their team. 'I recognise the hurt and anger people are going to be feeling. Change is hard and this is hard for fans. 'But fans' numbers drop has also not been a great experience for anybody, and we want to create an experience they can be proud of. 'What we were doing and keeping doing for fans was not the right thing. I would encourage everybody to imagine how exciting it could be and take that step into the future.' The WRU proposal comes amid Ospreys plans to move into a redeveloped stadium at St Helen's in Swansea for the 2026-27 season and the Scarlets having recently unveiled new investors. Dragons said this week elite professional rugby must continue in Gwent, while Cardiff are currently owned by the WRU having gone into administration in April. It is possible the WRU will face legal action from regions that could essentially be put out of business, with WRU chairman Richard Collier-Keywood saying 'two or three areas of potential legal challenge' exist. The WRU has also proposed the creation of a national campus at a site yet to be decided, which would be the home of the men's and women's professional teams, as well as Wales' national sides and the union's academy. Players were briefed on the WRU's plan on Tuesday and Dave Reddin, the new director of rugby and elite performance, is confident suggestions of possible player strike action will not materialise. Reddin said: 'The national campus would be a radical departure and doing something different, a defensive moat for Welsh rugby and creating a competitive advantage. 'We've got to look outside the box if we want to try and do things differently. 'Be brave enough to to lead sometimes and do things that no one else is doing. Do things that people think are a bit nutty, too different or too uncomfortable.'
Irish Times
3 hours ago
- Irish Times
Tech sell-off dampens mood on Wall Street
Global markets were higher on Wednesday before a tech sell-off on Wall Street extended into a second day and dampened the mood. Dublin Euronext Dublin finished 1.6 per cent lower, dragged down by insulation specialist Kingspan, which sank 4.4 per cent off the back of a badly received profit warning from Danish peer Rockwool. Kingspan is one of the biggest companies on the index, and the situation was not helped by a 2.4 per cent dip apiece for fellow heavyweights Ryanair and AIB. Food giant Kerry Group was the standout performer on the day as it rose 1.7 per cent. READ MORE Kenmare Resources finished down 2.7 per cent after saying it will pay an interim dividend to shareholders despite plunging to an $88.6 million (€76.17 million) loss before tax in the first six months of 2025 after taking a $100 million impairment charge on mining assets in Mozambique. London The FTSE 100 hit a new all-time high as it climbed 1.1 per cent, shrugging off inflation data and fresh falls among technology stocks on Wall Street. The FTSE 250 ended up 0.2 per cent, but the AIM All-Share finished 0.5 per cent lower. Rate sensitive housebuilders bucked the upbeat mood on the FTSE 100, with Persimmon falling 0.3 per cent. Elsewhere, ConvaTec gained 5.6 per cent as the medical products supplier started a share buyback worth up to $300 million. Ithaca Energy jumped 10.4 per cent to the highest in nearly three years after the oil and gas company lifted its 2025 production forecast. Meanwhile, United Utilities firmed 3.5 per cent as Barclays upgraded to 'overweight' and set a 1,535 pence share price target. Europe European stocks rose for a third straight session, aided by gains in defensive sectors. The Stoxx Europe 600 Index advanced 0.2 per cent by the close. Defensive stocks that are less sensitive to economic cycles, including food and beverage and personal care, outperformed. Construction, as well as travel and leisure stocks, were the biggest laggards. The Cac 40 in Paris ended slightly lower, while the Dax 40 in Frankfurt closed down 0.6 per cent. Among individual stocks, Alcon slumped 9.4 per cent after the medical device manufacturer cut its net sales forecast. Elsewhere, United Utilities Group rose 3.5 per cent after the stock was upgraded to overweight by Barclays analysts. New York Shares on Wall Street dropped for a second successive day as weakness in the tech sector persisted while a key meeting of central bankers later this week remained in focus for currency and rates traders. The S&P 500 declined 0.8 per cent and the tech-heavy Nasdaq Composite dropped nearly 1.5 per cent in early trade, as the pressure persisted after a steep fall on Tuesday. The Dow Jones Industrial Average was down 0.2 per cent. Analysts pointed to a confluence of factors behind weakness in tech stocks, including concerns over steep valuations, investors exiting profitable positions and a general mood of risk aversion. 'I think we were priced for perfection in the US and there was quite a lot of complacency in markets, so some summer volatility should have been expected,' said Ben Laidler, head of equity strategy at Bradesco BBI. Wariness over US president Donald Trump's growing influence over the sector has also been in focus for investors. US commerce secretary Howard Lutnick is looking into the government taking equity stakes in Intel as well as other chip companies, two sources told Reuters. The potential moves follow other unusual revenue-sharing deals Washington has recently struck with US companies, including AI chip giant Nvidia and Advanced Micro Devices. While the individual developments may be brushed aside by markets, they fall into the broader bucket of concerns over the institutional framework in the United States, Mr Laidler said. – Additional reporting: Agencies
