The Berliners vote in favor of socializing the real estate holdings of the large housing groups. But it is also clear to them that it will probably not come to that. However, it would be a big mistake to ignore the vote.
You have to leave that to the “Deutsche Wohnen & Co” initiative: Their referendum was a complete success. The majority of Berliners who came to the polling station voted yes. The message to the new governing mayor, the Senate and the major landlords is clear: Finally, provide more affordable living space.
It is very unlikely that the apartments of the large real estate groups – as requested by the initiative – will actually be socialized. Because the referendum is not legally binding. Of the parties represented in the newly elected House of Representatives, only the left wants to implement it in any case. The Green top candidate Bettina Jarasch sees socialization as the last resort and SPD front woman Franziska Giffey, in all likelihood the new governing mayor of the capital, categorically rules out expropriations.
There are two main arguments against socialization: It would cost billions of euros in compensation without even building a single new apartment. And it would be new legal territory. The constitutional court would probably cash in on such a project.
The Berliners know that too. Many will have voted yes to turn the finger on politics and real estate companies. Your demand: “Act! Immediately!” The result of the House of Representatives election shows that many of them do not consider socialization to be a good idea. According to surveys, for Berliners “rent and living” was the topic that was most important to them when they decided to vote. At the same time, a woman, Giffey, won the election who made it clear that she is not even thinking about implementing the referendum. And the left lost easily.
Against this background, the stock exchange reacted with a deeply relaxed attitude. The shares of the real estate giant Vonovia, which is about to take over Deutsche Wohnen, went up significantly today. Nobody expects socialization there.
Initiative has achieved a lot
What doesn’t change anything about it, however: There is an urgent need for action in the housing issue for the new Berlin government. Red-green-red has really not smeared itself with fame here in recent years. Housing construction is progressing far too slowly, the rent cap was a disaster, investors are pissed off. In other words: there is plenty of room for improvement.
Even if there is no socialization, the initiators of the referendum have achieved a lot. To smooth things over, Vonovia has, as it were, promised a rent freeze in Berlin and is selling more than 14,000 apartments to the state. In view of the mood in the capital, many large landlords have refrained from demanding rent repayments after the rent cap failed.
The new Senate is now in a comfortable position vis-à-vis the real estate groups. With the clear vote of the Berliners behind him, he has excellent leverage to ensure adequate rents in their housing stock over the long term. In order to relax the rent situation in the capital in the long term, however, more is needed: many more apartments have to be built quickly. The new government’s job is to solve the problem. But it is not only in view of the election chaos in the capital that skepticism should be in order as to whether it will succeed.