Following the recent surveys in Berlin, the main association of the German construction industry has sharply criticized the proposed plans for socializing housing stock. Tim-Oliver Müller, the Managing Director of the association, told the “Rheinische Post” that the results of the Berlin survey are “awe-inspiring” from an industry perspective, but upon closer examination, the true effect is the opposite. Müller warned that nationalizing housing assets would be counterproductive and damaging to the construction sector, as it neither generates new homes nor facilitates necessary maintenance.
He argued that this signal already presents a damaging outlook for Germany as a location. Berlin is crucial as the nation’s capital, and Müller stressed that “international investors build where there is legal certainty and where projects make financial sense.” Instead of debating nationalization, he asserted that the country needs a “Construction Turbo II,” which must go far beyond merely simplifying planning and approval laws.
Economist Michael Voigtländer of the Institute of German Economy (IW) in Cologne expressed similar harsh criticism. Voigtländer told the “Rheinische Post” that plans to socialize housing would inflict significant damage on the Berlin location and the German economy as a whole. He argued that companies should not be expropriated without fair market compensation. He estimated the market value of the housing at around 25 billion Euros, although only 16 billion Euros of compensation funds were available, which he suggested was a devastating signal to investors.
According to the survey papers put forward by the left-wing, Green, and SPD parties for a potential governing coalition, these parties are proposing the nationalization of major property conglomerates owning over 10,000 apartments.
