Berlin could expropriate 160,000 apartments as parties reach key deal

The next Berlin state government could bring around 160,000 apartments under public ownership after three left-wing parties achieved a breakthrough in initial coalition talks. 

One month after The Left's victory in the state election in the German capital, the party has successfully concluded exploratory talks with the Greens and Social Democrats (SPD) following weeks of tense negotiations marked by a dispute over alleged anti-Semitism. 

Formal coalition talks are set to begin in November after all three parties approve the joint plan set out after the initial negotiations.

The plan includes a clear commitment to expropriate housing stocks from large property developers, a key plank of The Left's election campaign.

The measure would affect all companies with more than 10,000 flats in the German capital. Any additional apartments beyond that number would be acquired by the city-state. 

Elif Eralp, who is seeking to become The Left's first mayor of Berlin, said five companies would be affected by the compromise, including Vonovia. 

Unaffordable housing was a central theme of the campaign, with rent costs in Berlin spiralling in recent years and public apartments in short supply. 

In a 2021 referendum, a majority voted in favour of bringing large housing companies under public control, but the result is yet to be implemented. 

Anti-Semitism, rent and rubbish

The exploratory talks began last Thursday after the three parties reached an agreement on how they intend to handle anti-Semitism. 

The Greens and SPD had made this a prerequisite for starting exploratory talks, after criticism of parts of The Left's Berlin chapter over their positions on Israel, and accusations that the party has not done enough to tackle anti-Semitism.

"We are making a joint pledge to protect Jewish life," said Eralp. "We will take action against anti-Semitism." 

In addition to expropriation plans, the document presented after the exploratory talks includes further measures intended to tackle the capital's housing crisis. A rent cap could be introduced for the approximately 440,000 publicly owned apartments, limiting increases to a maximum of 2% per year. 

The three parties want to significantly step up their efforts to tackle illegal "rent profiteering." And the largest new-build programme to date is set to result in 100,000 planning permissions by 2031, which will then lead to 100,000 new affordable flats.

The parties also intend to tackle litter, another issue that played a major role in the election campaign.

Eralp announced that there would be one free collection day for bulky waste per year. 

Next steps

The initial agreement must next be approved by the three parties before formal coalition talks can begin.

The Greens intend to decide on this at a small party conference on Monday. The SPD's regional executive committee is expected to make a decision based on the paper presented after the exploratory talks, though no date has yet been set.

The Left has not scheduled a party conference until October 31, due to two-week half-term holidays in Berlin. A decision will be taken then on whether to commence coalition negotiations. 

If all three parties give their approval, these negotiations could then begin in early November.