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HOUSING

How Berliners are plotting a radical ‘expropriation referendum’ to fight housing crisis

At the Kottbusser Tor roundabout in Berlin's fashionable Kreuzberg district, 29-year-old Jannick is waiting in line to sign a petition which he says has captured the "zeitgeist" in the German capital.

How Berliners are plotting a radical 'expropriation referendum' to fight housing crisis
"Expropriate Deutsche Wohnen & Co." Photo: DPA/Paul Zinken

He is one of 170,000 signatories needed to launch a referendum on expropriating large property developers, a drastic and unprecedented move in the fight against Berlin’s housing crisis.

“Everyone has the right to have a place to live,” Jannick tells AFP as he waits to add his name to the list of those urging the state to forcibly buy back properties from large real estate companies.

The “Expropriate Deutsche Wohnen & Co.” initiative, named after the biggest property company in Berlin, targets companies with more than 3,000 apartments in their portfolios.

MUST READ: How to use Berlin’s rental cap law to catch out illegal landlords

Unthinkable just a few years ago, the initiative is gaining more and more support from Berliners exasperated by ever-rising rents and a housing crisis which threatens to get even worse due to the coronavirus pandemic.

In a city where more than 80 percent of residents rent their homes, the capital’s attractiveness to investors and structural lack of housing sent prices soaring by nearly 85 percent between 2007 and 2019.

Rent cap

Berlin’s city-state government already moved to freeze rents for five years from 2020 in a bid to halt runaway gentrification.

Yet the much-disputed “rent cap” preventing rent hikes for 1.5 million apartments has seen the number of rental offers plummet as owners decline to put apartments on the market, according to the German Institute for Economic Research (DIW).

Many private landlords are waiting to see whether the cap will be upheld in a long-awaited constitutional court ruling which is expected in the coming weeks.

“We need a long-term tool, and putting real estate assets into common ownership is one solution,” Ingrid Hoffmann, a spokeswoman for “Expropriate Deutsche Wohnen & Co.”, told AFP.

Housing insecurity has been compounded by the COVID-19 pandemic, which is also putting jobs under threat.

“The coronavirus crisis is going to lead to a real social emergency when it comes to housing,” warned rental association Berliner Mietverein in February.

According to a study by public savings bank Sparkasse, one in four Berliners expect their financial situation to worsen in 2021.

Unemployment rose to 10.6 percent in the German capital in 2020, a two-point rise on the previous year and almost 5 percentage points above the national average.

“I lost my student job because of the pandemic. If I need to find a new apartment, I’m scared I won’t be able to,” said 23-year-old Jan, a Berlin resident who is also supporting the expropriation initiative.

‘Unconstitutional’

“Expropriate Deutsche Wohnen & Co.” bases its claims on Article 15 of the German constitution, which stipulates that “land, natural resources and means of production may…be transferred to public ownership” in the public interest in return for compensation.

Adopted in 1949 with the founding of the West German state, the article was long forgotten during the Cold War with its tensions between capitalist West and communist East.

The petition, which collected 77,000 signatures in its first phase, needs more than double that number to reach the 7 percent of the city’s electorate required for a referendum.

Deutsche Wohnen, which owns around 111,000 of an estimated two million rental apartments in Berlin, dismissed the initiative’s aims.

“Expropriation is neither constitutional nor financially viable for Berliners,” Marko Rosteck, a spokesman for the property giant, told AFP.

The city’s social-democratic mayor Michael Mueller is also sceptical, arguing that he would prefer “partnerships with the private sector”.

With tensions escalating in 2019 over rising rents, Berlin authorities spent almost a billion euros to buy back 6,000 former public housing apartments that had been privatised.

SEE ALSO: These are the reasons why so many Germans rent rather than buy

Yet the city is already laden with debt, and critics warned that by renationalising homes, the authorities were participating in property speculation.

Federal finance minister Olaf Scholz in February declared housing “one of the biggest social issues of our time”.

Despite the acute shortage, a 2014 referendum on housing in Berlin saw citizens reject planned new builds on the former Tempelhof airfield south of the city centre.

Member comments

  1. I understand that Germany has a different economic model to the one us Anglo Americans are used to and is far less brutal. The forces of supply and demand, however, cannot be ignored and, ultimately, the only solution is to increase the supply and build more (I would suggest selling them at a discount and restricting ownership to buyers who are going to live in them for a minimum of 5 years on 100% government backed mortgages. You can sell up earlier but would have to pay back the discounted amount). Historically most interventions (such as rent caps) fail, as they reduce investment and the quality of the existing local housing stock as well as driving prices up in the surrounding areas. My advice is stop renting and borrow borrow borrow and buy buy buy!

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BERLIN

EXPLAINED: Berlin’s latest Covid rules

In response to rapidly rising Covid-19 infection rates, the Berlin Senate has introduced stricter rules, which came into force on Saturday, November 27th. Here's what you need to know.

A sign in front of a waxing studio in Berlin indicates the rule of the 2G system
A sign in front of a waxing studio indicates the rule of the 2G system with access only for fully vaccinated people and those who can show proof of recovery from Covid-19 as restrictions tighten in Berlin. STEFANIE LOOS / AFP

The Senate agreed on the tougher restrictions on Tuesday, November 23rd with the goal of reducing contacts and mobility, according to State Secretary of Health Martin Matz (SPD).

He explained after the meeting that these measures should slow the increase in Covid-19 infection rates, which was important as “the situation had, unfortunately, deteriorated over the past weeks”, according to media reports.

READ ALSO: Tougher Covid measures needed to stop 100,000 more deaths, warns top German virologist

Essentially, the new rules exclude from much of public life anyone who cannot show proof of vaccination or recovery from Covid-19. You’ll find more details of how different sectors are affected below.

Shops
If you haven’t been vaccinated or recovered (2G – geimpft (vaccinated) or genesen (recovered)) from Covid-19, then you can only go into shops for essential supplies, i.e. food shopping in supermarkets or to drugstores and pharmacies.

Many – but not all – of the rules for shopping are the same as those passed in the neighbouring state of Brandenburg in order to avoid promoting ‘shopping tourism’ with different restrictions in different states.

Leisure
2G applies here, too, as well as the requirement to wear a mask with most places now no longer accepting a negative test for entry. Only minors are exempt from this requirement.

Sport, culture, clubs
Indoor sports halls will off-limits to anyone who hasn’t  been vaccinated or can’t show proof of recovery from Covid-19. 2G is also in force for cultural events, such as plays and concerts, where there’s also a requirement to wear a mask. 

In places where mask-wearing isn’t possible, such as dance clubs, then a negative test and social distancing are required (capacity is capped at 50 percent of the maximum).

Restaurants, bars, pubs (indoors)
You have to wear a mask in all of these places when you come in, leave or move around. You can only take your mask off while you’re sat down. 2G rules also apply here.

Hotels and other types of accommodation 
Restrictions are tougher here, too, with 2G now in force. This means that unvaccinated people can no longer get a room, even if they have a negative test.

Hairdressers
For close-contact services, such as hairdressers and beauticians, it’s up to the service providers themselves to decide whether they require customers to wear masks or a negative test.

Football matches and other large-scale events
Rules have changed here, too. From December 1st, capacity will be limited to 5,000 people plus 50 percent of the total potential stadium or arena capacity. And only those who’ve been vaccinated or have recovered from Covid-19 will be allowed in. Masks are also compulsory.

For the Olympic Stadium, this means capacity will be capped at 42,000 spectators and 16,000 for the Alte Försterei stadium. 

Transport
3G rules – ie vaccinated, recovered or a negative test – still apply on the U-Bahn, S-Bahn, trams and buses in Berlin. It was not possible to tighten restrictions, Matz said, as the regulations were issued at national level.

According to the German Act on the Prevention and Control of Infectious Diseases, people have to wear a surgical mask or an FFP2 mask  on public transport.

Christmas markets
The Senate currently has no plans to cancel the capital’s Christmas markets, some of which have been open since Monday. 

According to Matz, 2G rules apply and wearing a mask is compulsory.

Schools and day-care
Pupils will still have to take Covid tests three times a week and, in classes where there are at least two children who test positive in the rapid antigen tests, then tests should be carried out daily for a week.  

Unlike in Brandenburg, there are currently no plans to move away from face-to-face teaching. The child-friendly ‘lollipop’ Covid tests will be made compulsory in day-care centres and parents will be required to confirm that the tests have been carried out. Day-care staff have to document the results.

What about vaccination centres?
Berlin wants to expand these and set up new ones, according to Matz. A new vaccination centre should open in the Ring centre at the end of the week and 50 soldiers from the German army have been helping at the vaccination centre at the Exhibition Centre each day since last week.

The capacity in the new vaccination centre in the Lindencenter in Lichtenberg is expected to be doubled. There are also additional vaccination appointments so that people can get their jabs more quickly. Currently, all appointments are fully booked well into the new year.

 

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