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Berlin nationalisation plan could cost Vonovia over €8bn

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Berlin's Left Party, Greens and SPD want to nationalise up to 160,000 flats owned by large companies, with compensation capped at €16bn. Calculations cited in reports say Europe's largest residential landlord could lose more than €8bn.

The three parties' negotiators plan to take over about 150,000 to 160,000 flats owned by five major housing groups. These are Vonovia, Adler, Heimstaden, Covivio and DVI Group. A socialisation bill is not due in the House of Representatives until mid-2028, and a funding plan is to be finalised in 2027.

Those calculations put the gap for Vonovia at about €8.4bn. They value 120,000 of its homes at €20.4bn, against compensation of €12bn. The proposed compensation is over 40% below the average book value of apartments held by the four companies. Vonovia holds 130,000 apartments in Berlin.

Vonovia chief executive Luka Mucic calls the plans unconstitutional. He says they would not withstand a court challenge. He also says Germany needs predictability, legal certainty and a stable investment environment to tackle a shortfall of 1.4 million homes.

Key facts

Who
Vonovia (Europe's largest residential landlord, stands to lose more than €8bn); Left Party (coalition negotiating party in Berlin); Greens (coalition negotiating party in Berlin); SPD (coalition negotiating party in Berlin)
What
Prospective governing parties in Berlin are discussing moving large apartment portfolios into public ownership, a plan that could cost Vonovia more than €8bn, according to the article.
When
23 October 2026
Where
Berlin, Germany
Status
Reported

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