Germany plans tougher rules for expropriating large housing firms

Interior Minister Alexander Dobrindt, representing the CSU, unveiled a draft investment protection law intended to raise the barriers for any future socialisation of major housing companies. The bill stipulates that any compensation must reflect the full market value determined by an independent appraisal, be paid instantly in cash, and only proceed if a “compelling necessity” is demonstrated after exhausting all options for new construction and housing subsidies.

The government introduced the measure as a reaction to exploratory talks by Linken, Grüne and SPD, which have discussed capping the size of large rental firms and moving surplus apartments into communal ownership. Critics, including Linken chairman Luigi Pantisano, argue that Dobrindt’s approach puts the interests of corporate shareholders ahead of Berlin’s renters. The proposal remains at the draft stage and has not been enacted.