BERLIN, Sept 29 (Reuters) – Expropriating large residential landlords in Berlin would not ease the city’s housing shortage and could make its rental market more rigid, according to a study by the Kiel Institute for the World Economy published on Tuesday.
Elif Eralp, the far-left leader pushing to take over as mayor of Berlin, has pledged to expropriate more than 200,000 housing units from corporate landlords in a campaign that made the party reach its best result in the German capital in this month’s election.
Here are the key points from the study:
• If funds required to compensate companies such as Vonovia were instead invested in construction, Berlin could build up to 71,000 additional apartments by 2045, the economic institute said. That could leave asking rents up to 8.7% below levels otherwise expected by then.
• The affected housing portfolios have an estimated market value of €40.2 billion ($45.6 billion), although compensation could be around half that amount, the study said.
• “What matters is not who owns the apartments, but whether new ones are being added,” said co-author Jonas Zdrzalek.
• State ownership would widen the divide between tenants with regulated existing leases and prospective renters, reducing mobility and worsening inefficient use of housing, the study said.
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(Reporting by Christian Kraemer, writing by Maria Martinez, editing by Thomas Seythal)