Government formation: Socialization is to come - what could it bring?
Around 160,000 Berlin apartments are to be transferred to state ownership - a unique step nationwide. Why economists warn that this could even cause rents to rise.
The parties of the potential coalition in Berlin, comprising Linke, Greens, and SPD, have agreed to take 160,000 apartments from five large property companies into public ownership. The companies would receive 16 billion euros in compensation, financed through loans and refinanced through rents. The measure would primarily affect Vonovia, which owns 130,000 apartments in Berlin.
The plan aims to increase the city's influence on rents and address the housing issue, but economists argue that it may not create new housing, deter necessary investors, and be unaffordable and unconstitutional.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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