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Berlin Coalition Agrees on Expropriation Framework Law

Parliament will consider a draft law embedding fair compensation rules with triggers for state takeover of housing, energy, water services by December.

Overview

  • Coalition leaders Dirk Stettner of the CDU and Raed Saleh of the SPD agreed on key points for the framework law over the weekend.
  • The framework will establish fair compensation principles and define triggers for state takeover of housing, water and energy providers.
  • The legislature plans to introduce a draft to the Berlin Abgeordnetenhaus by December 2025, with the law effective at least two years after publication pending constitutional review.
  • The CDU remains opposed to mandatory expropriation; the SPD sees it as a tool to address market failures and the city’s housing shortage.
  • The initiative Deutsche Wohnen & Co enteignen has called the proposal a 'distraction maneuver' that will not lower rents or socialize any apartments.