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Vergesellschaftung Dominates Berlin Election Campaign

Dispute over how much to pay landlords for seized housing has led the federal government to propose a law banning state-level nationalisations.

Overview

  • With the Abgeordnetenhaus vote set for September 20, Vergesellschaftung — a plan to transfer large private rental portfolios into public or common ownership — is the top issue shaping party messages and voter choice.
  • Main parties are sharply divided: Die Linke and the Greens back implementing the 2021 Deutsche Wohnen & Co. enteignen referendum while the CDU and SPD oppose carrying it out under a state law using Article 15 of the Basic Law.
  • Official and campaign cost estimates differ widely, with the Berlin Landesrechnungshof putting compensation at up to €36 billion based on market value and the initiative offering a lower ceiling near €17 billion by valuing payouts at about 40–60% of market prices and financing them with state bonds.
  • Banks, industry groups and the Investitionsbank Berlin warn that moving large portfolios into public ownership would weaken investor confidence and already show early signs of caution among start-ups and financiers.
  • The debate is rooted in a severe housing shortage and rising rents in Berlin — the Senate estimates more than 100,000 missing homes and asking rents up roughly 70% — and the outcome could shape whom the next Senate serves and whether the initiative succeeds with a new Volksbegehren later this year.