Berlin: Expropriations could cost up to €36bn

05/03/2019

The expropriation of large Berlin housing companies would cost between €28.8bn and €36bn, according to calculations by Berlin’s senate. Added to that cost would be ancillary purchase costs of €180mn and other compensatory payments to the affected companies in the amount of €1.5bn to €2.9bn. This information, reported by several newspapers, is part of the as yet unpublished official cost estimate for the referendum “Expropriate Deutsche Wohnen & Co.” The initiators of the referendum are expecting a sum between €7.3bn and €13.7bn. The umbrella organization of the housing industry GdW considers this “wishful thinking”. The €36bn estimated by the senate, GdW states, could build up to 214,000 new apartments — which would correspond with the senate’s own target of building a total of 200,000 apartments in Berlin by 2030. The initiative strives to municipalize private housing companies owning more than 3,000 units; the signature drive is to start in April.


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