Berlin's economy minister warns that forced housing takeovers could stall new construction

Franziska Giffey, Berlin's current economy minister, denounced the expropriation plans outlined in a coalition draft by the Linke, Grüne and SPD. She contended that taking over large rental corporations would impede ongoing construction projects and exacerbate the already tight housing market as the city’s population continues to rise. Giffey warned that such measures would also burden the local economy and the state’s finances, potentially prompting legal challenges that could drag on for years.

She pointed to the past five years, during which more than 80,000 apartments were built through close collaboration with private housing firms. According to Giffey, the proposed approach sends a contrary signal to investors and could lead to a slowdown or halt of future developments.