BERLIN – Germany’s Die Linke party is pushing a bold plan that could fundamentally reshape housing ownership in the nation’s capital. The left-wing faction wants Berlin to take control of roughly 160,000 apartments currently held by large private real estate companies, with compensation to owners potentially reaching €16 billion. Party leader Ines Schwerdtner has suggested the takeover could be financed through loans repaid with tenants’ rent. But critics warn the plan may ultimately leave renters footing the bill through higher charges.
The debate has intensified following the release of preliminary coalition talks between the SPD, The Greens, and Die Linke in Berlin.
According to German daily Bild, Schwerdtner outlined the proposed financing on 19 October 2026. Under her plan, the city would take over significant housing stock, repaying the cost over time with rental income.
However, there is no confirmation that rents would necessarily have to rise. The question of rent increases represents one of the biggest sticking points between supporters and critics of the proposal.
Berlin Eyes Takeover of Major Private Landlords’ Apartments
The essence of the plan is to transfer a large portion of private rental housing into public or social ownership.
According to coalition talks, the measure would target companies owning more than 10,000 apartments in Berlin.
The SPD, Greens, and Die Linke agreed in a preliminary coalition document on 19 October to pursue this ownership change.
However, this does not mean expropriation is legally approved or that the process has started.
If implemented, the measure would require further political, financial, and legal decisions.
Housing affordability played a key role in Berlin’s recent elections. As previously reported by Aktualizovane.sk, Die Linke won 25.7% of the Berlin vote, riding a wave of concern over high housing costs.
How Would the Left Raise €16 Billion?
The biggest question remains how to fund the entire operation.
Schwerdtner’s proposal suggests the city would not pay compensation to property owners directly from the regular budget.
Instead, the necessary funds would be raised through loans.
These loans would then be repaid from the rental income collected by the new public landlord.
Schwerdtner describes this mechanism as budget-neutral, claiming the multi-billion-euro debt could be serviced without dramatic rent hikes.
Such an outcome, however, cannot be guaranteed.
It would depend on the price paid for the apartments, interest rates, operating costs, and the actual rental income received.
One Estimate Says Rents Could Rise to €11.60/sqm
Bild highlighted a Cicero magazine analysis warning that loan costs could make financing very difficult.
In a model with a €16 billion loan at a 4% interest rate, interest payments alone would reach about €640 million per year.
If the interest rate rose to 5%, annual interest would jump to €800 million.
These figures do not include property management, repairs or building upgrades.
Based on Bild’s cited calculations, this could mean average base rents might need to rise from about €8 up to €10.40–11.60 per square meter under these assumptions.
However, this is only a model scenario, not a confirmed rent increase. The real impact would depend on final financing arrangements and any new legal limits on rent growth.
Schwerdtner Says Cheaper Financing Is Possible
The Die Linke chair offers a different economic perspective.
She points to a study by the Hans-Böckler-Stiftung, which estimates around €13.5 billion would be needed to take over approximately 210,000 apartments.
According to this analysis, financing could be structured to avoid burdening Berlin’s regular budget.
However, loan repayments, including interest, would last approximately 40 years.
The differences between the various models are significant.
Each analysis makes different assumptions about the number of apartments, compensation levels, and financing terms.
Therefore, it is not possible to reliably state whether the plan will ultimately be financially advantageous or disadvantageous for tenants until binding terms are known.
Critics Argue Funds Could Build Tens of Thousands of New Apartments
Opponents of expropriation raise another issue: taking over existing buildings does not automatically increase the city’s available apartment stock.
The Berlin-Brandenburg Housing Association told Bild that for €16 billion, about 78,000 new apartments could be built on public land.
This estimate is based on projected construction costs and does not account for every possible expense in individual projects.
Supporters of public ownership counter that the value of an apartment takeover is less about construction and more about long-term control over rents and curbing the private sector’s pressure to raise prices.
Schwerdtner publicly defended pursuing both new social housing construction and the takeover of large private property portfolios as recently as August.
Does Berlin Even Have the Legal Right to Expropriate Private Landlords?
German law allows for interventions in property rights under certain conditions, but requires a legal basis and solutions for owner compensation.
For the planned transfer of large housing portfolios into public ownership, the main contention is what constitutes adequate compensation.
Schwerdtner argues the city is not obliged to pay full market value automatically.
Critics note that property owners could challenge such measures in court.
Even Schwerdtner admits that final decisions on legal disputes will ultimately rest with the judiciary.
Thus the final cost of the proposed acquisition remains uncertain.
Housing Dispute Could Decide Berlin’s Political Future
After September’s elections, Berlin’s housing policy has become one of the central issues in negotiations for forming a new city government.
While Die Linke champions sweeping ownership changes, other parties are weighing the financial and legal ramifications.
The key will be whether coalition partners can agree on the specifics of legislation, funding, and tenant protections.
The outcome will be significant for German politics more broadly. Aktualizovane.sk has also reported on joint political priorities involving Chancellor Friedrich Merz and French President Emmanuel Macron regarding Berlin.
Will Tenants Ultimately Pay for Expropriation?
Under the current proposal, rental income is expected to be a key source for paying back loans and compensating former property owners.
This means tenants would, through their regular rent payments, help finance the entire system.
But this does not mean a separate fee or mandatory rent increase has already been decided.
The crucial difference is between using existing rental income and needing to actually raise it.
The answer to this will determine whether the plan delivers real relief for Berliners—or brings new financial risks.
Sources: Bild, Cicero, B.Z., statements from Ines Schwerdtner. Image: AI illustration
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This article was translated from the original Slovak version with the assistance of AI.
