Berlin plans to nationalize more than 144,000 apartments. Vonovia risks losses of 8.4 billion euros

Călin Nicolescu

23 October 2026, 10:43

International

Foto https://www.facebook.com/VonoviaSE/photos?locale=ro_RO

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Vonovia, Europe’s largest residential property owner, risks losses of approximately €8.4 billion if plans to nationalize apartments in Berlin are adopted. The parties negotiating to form the future government of the German capital are discussing the transfer of more than 144,000 homes into public ownership in order to reduce rents.

The proposal targets owners with more than 10,000 apartments in Berlin and is based on a provision of the German Constitution that has never before been applied in this way. A bill is expected to be presented by 2028, while total compensation would be capped at €16 billion—more than 40% below the average book value of the affected homes.

Vonovia owns approximately 130,000 apartments in Berlin, of which 120,000 could be nationalized. At an average market value of €170,000 per home, they are worth around €20.4 billion, but the company would receive approximately €12 billion.

The plans are backed by Die Linke, the SPD and the Greens, amid a shortage of approximately 100,000 apartments in Berlin. Vonovia CEO Luka Mucic considers them unconstitutional. The company nevertheless announced investments of €539 million and the construction of 1,000 new homes.

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Context: In Berlin, Die Linke’s victory on the issue of rents has amplified political pressure on major housing landlords

Previously, Die Linke won the regional elections in Berlin, while the victory was overshadowed by the advance of the far right in a second election held in an eastern state. In Berlin, the left-wing party linked its campaign to the housing crisis and promised to place approximately 220,000 homes owned by real estate companies into public ownership, in a message that became central to the negotiations to form a majority.

At the same time, at the economic level, the heads of several financial institutions warned that the rise of parties at the extremes could affect Germany’s attractiveness to investors, because of perceived risks regarding the stability and predictability of the business environment—a picture that overlaps with the political dispute surrounding rents and interventions in the real estate sector.