The debate surrounding the possible socialisation of large housing portfolios has gained significant momentum in recent weeks. This has been driven by the upcoming election to the Berlin House of Representatives on 20 September and the prospect of a Red-Red-Green state government, in which the Greens and parts of the SPD do not unequivocally reject de facto expropriation, while The Left firmly supports it.
Against this political backdrop, Berliner Sparkasse, Berliner Volksbank, Deutsche Kreditbank AG (DKB) and Investitionsbank Berlin (IBB) commissioned two expert reports, the findings of which were presented at a press conference in Berlin on 23 June 2026.
The conclusions of the studies by the Cologne Institute for Economic Research (IW) and Empirica are clear: socialisation would not create a single square metre of additional housing, but would entail considerable risks for the housing market, tenants, people seeking accommodation, Berlin’s state budget and Berlin as a business location. International investors are closely monitoring developments. A decision in favour of socialisation would place a significant strain on Berlin’s economy and cost jobs.
Berlin banks call for a consistent expansion of housing supply
The institutions that commissioned the independent studies share a clear position: Berlin needs more affordable housing. However, this goal will not be achieved by forcibly changing ownership structures, but through additional investment, more new construction, faster approvals and a reliable regulatory framework for all stakeholders in the housing market.
The four banks therefore advocate a consistent expansion of housing supply. This includes, in particular, faster planning and approval procedures, additional building land, the conversion of suitable commercial premises into housing, investment-friendly framework conditions and targeted support schemes for households with specific needs.
“Berlin needs more affordable housing – not a reorganisation of ownership structures in the existing housing stock. The challenge is significant, but it can be overcome through building, investment and partnership-based cooperation between policymakers, the housing sector and the financial sector. We four institutions stand ready as reliable financing partners: as competitors in the market, but united in our commitment to the people of Berlin and to our city,” the banks state in their joint declaration.
Bavarian State Government wants legal limits on the socialisation of housing
The Bavarian State Government has also expressed strong opposition to the socialisation of housing. At the Conference of State Ministers for Construction, it called for legal limits to be placed on such measures. Speaking at the conference, Bavarian Minister for Construction Christian Bernreiter said: “Socialism has failed, yet some still dream of a GDR 2.0. No one would build flats anymore, no property company would be able to secure financing, and all collateral would be destroyed. It must never be allowed to come to that. We need clear rules from the federal government to prevent this from happening. Our motion on this issue was adopted at the Conference of Building Ministers in Berlin. This shows that there is cross-party agreement on this matter. As the State Government, we also intend to launch an initiative in the Bundesrat.”
More housing can only be created if there is investment certainty and the state ensures favourable framework conditions. Building Minister Bernreiter said: “In Bavaria, we have ignited the construction turbo and introduced our own reform of building regulations. In doing so, we are systematically cutting red tape and reducing costs and administrative burdens. We must do everything we can to ensure that more housing is created – through new construction as well as extension and conversion projects.”
The plans from Berlin, on the other hand, would not solve any problems. “On the contrary: the mere fear of socialisation is poisoning the investment climate and undermining private investors’ willingness to invest in the housing market. Yet we urgently need private investors, as the state cannot meet the demand for housing on its own.”
