Following the Left Party’s victory in the Berlin election on September 20, the prospect of expropriating large real estate firms has emerged as a central political flashpoint. The party was the sole major contender committed to implementing the results of the 2021 referendum, in which 57.6% of voters supported taking ownership of apartments held by companies with portfolios exceeding 3,000 units. However, the federal government has firmly stated it will prevent such measures, raising significant legal and political questions about the feasibility of the plan.
The campaign, known as “Deutsche Wohnen & Co. enteignen,” argued that transferring approximately 240,000 to 270,000 apartments into public hands would help address the housing crisis by offering affordable rents. Deutsche Wohnen alone owns over 100,000 units in the capital. Currently, state-owned entities like Berlinovo manage about 25% of rented properties in Berlin, a figure proponents believe could rise above 30% under the new model.
Since the 2021 referendum, the path to implementation has faced substantial obstacles. An expert commission appointed by former SPD Mayor Franziska Giffey concluded in 2023 that the expropriation was constitutional, provided budgetary details were resolved. Despite this, the current conservative-led government under CDU leader Kai Wegner has ruled out expropriation entirely. Wegner’s administration has instead pursued a socialization law that explicitly excludes forced acquisitions, a draft which was finalized in December 2025.
Legal experts note that while the campaign relies on Articles 14 and 15 of the German Basic Law, the precedent for using Article 15— which allows for the transfer of means of production to public ownership—does not exist. Although Article 14 permits expropriation for public good, its application to entire corporate housing portfolios represents uncharted legal territory. Critics, including some legal authorities, argue the move could violate European law and anticipate costly litigation from property owners seeking market-rate compensation.
Chancellor Friedrich Merz responded swiftly to the election results, announcing plans to introduce federal legislation that would prohibit state governments from expropriating private property. Merz emphasized the need to send a clear signal to international investors that private property rights are secure in Germany. However, the constitutionality of such a federal ban is uncertain, as the Constitutional Court has previously ruled that the federal government cannot simply override state legislative competencies.
As the Left Party enters coalition negotiations with likely partners the SPD and the Greens, the expropriation issue threatens to become a major point of contention. Acknowledging the legal challenges and the time required to implement socialization, the Left has also proposed interim measures, such as a rent cap. Meanwhile, public enthusiasm appears to have waned; a recent infratest-dimap poll indicates that only 37% of Berliners currently support the expropriation of real estate companies.
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