The Federal Government is expected to set limits on the expropriation of large residential properties. This intention emerged from a draft resolution prepared for the Special Ministers’ Conference for Construction, as reported by the “Handelsblatt”.
The Ministers’ Conference plans to urge the government to develop federal regulations designed to protect investments in the housing market. The draft resolution argues that, rather than intervening in property rights through expropriation, providing investment-friendly incentives is a more suitable way to create the urgently needed additional housing. The conference is therefore calling on the Federal Government to demonstrate commitment to investment security by submitting a corresponding legislative proposal.
The draft resolution, titled “Securing investment in the housing market, setting limits on expropriation,” was jointly submitted by Bavaria and North Rhine-Westphalia. North Rhine-Westphalia’s Minister for Construction, Ina Scharrenbach (CDU), told the “Handelsblatt” that housing shortages should be solved through construction, not through the expropriation of private property. She emphasized that Germany requires constitutional clarity and a strong commitment to property guarantees.
This stance comes against a backdrop of ongoing debates in Berlin regarding the compulsory acquisition of major housing companies under Article 15 of the Basic Law. The resolution serves as a warning that such measures could worsen the investment climate for rental housing construction, leading to negative consequences for Germany’s economic standing, the banking sector, and the financial markets.
