Vonovia calls Berlin plan to socialize housing unconstitutional; shares slip
Germany’s largest landlord says a planned takeover of about 160,000 Berlin apartments by the city would not survive a court challenge. Its shares fell on Monday.
Symbolic image · Photo: Reinhold Möller Ermell / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Housing group Vonovia rejected plans by the Left Party, the Greens and the Social Democrats in Berlin to socialize large landlords. “The result of the exploratory talks does not change our position,” the company told the dpa-AFX news agency on Monday. It said socialization in the planned form would be unconstitutional and would not withstand judicial review. Vonovia also pointed to the need for private investment, saying it is building about 1,000 apartments in Berlin.
Under the parties’ exploratory paper, private companies owning at least 10,000 apartments in Berlin would have to hand over holdings above that threshold in exchange for compensation. Left Party politician Elif Eralp said five companies and about 160,000 apartments would be affected. Compensation is to be capped at 16 billion euros, with legislation planned for mid-2028.
Vonovia shares were down about 1.8% at midday. Whether the plans go ahead depends on the three parties opening coalition talks. The Social Democrats and Greens decide on Monday afternoon and evening, the Left Party on Oct. 31.