the yes prevailed in the referendum on the expropriation of houses

Although non-binding, the referendum represents massive support for the possible initiative, which would involve the purchase of homes expropriated by the state in order to reduce real estate speculation and provide more affordable housing.

The real estate crisis has worsened in recent years. The city which, five years ago, announced itself as the capital of Europe and positioned itself as one of the cheapest cities to live in, was surrounded by financial speculation and companies started buying spaces for set up their head office.

Currently 80% of Berliners rent and it is assumed that between 2017 and 2030 the city will need at least 200,000 new properties to tackle the housing problem.

Last Wednesday, Berlin took a second step on the problem and bought from the main real estate companies, Deutsche Wohnen and Vonovia, 14,750 homes and 450 premises for 2.5 billion euros (almost 3 billion dollars), in order to ” intervene on rent prices. .

These properties will be distributed among the city’s social housing companies and will be in addition to the other 6,000 social housing units that were purchased in 2019 from the real estate company Ado Properties.

To carry out the referendum, Berlin managed to collect the necessary 175,000 signatures in just a few months, and the latest polls have shown a majority of voters in favor of an expropriation law.

This vote represents a rise in tensions since the proposal divides the coalition that governs Berlin: the Left Party, on the far left, strongly supports it; the Greens have given mixed signals; and the Social Democratic Party rejects it, as do the main opposition parties.

Who wants him Berlin Senate draft a law that allows the purchase of what they call “private” real estate companies that own more than 3,000 homes, they argue that this would be compatible with the German Constitution under Article 15, never used before, which stipulates that “the land, natural resources and means of production may be placed under a regime of collective property or other forms of collective management by a law which fixes the mode and amount of compensation”.

Thus, they claim that the companies would be compensated at a price “well below market value”, according to the German public radio and television portal Deutsche Welle.

Some jurists, on the other hand, assure that if the Berlin Senate approved such a law, it would be the subject of several legal appeals.

For example, in April 2021, the Federal Constitutional Court of Germany overturned the government’s decision to impose a five-year rent ceiling on the city.

Jakob Hans Hien, lawyer for Knathe, one of the capital’s leading real estate companies, argued that an expropriation law would not apply in Berlin and said the goal of going only to the against companies or individuals with 3,000 or more properties has no legal basis.

In addition, he assured that “compensation ‘well below market value’ would be unconstitutional” because “companies would not only be deprived of their assets, but would also suffer direct economic damage”.