Law & Politics
Analysis for investors and owners
Berlin coalition agreement 2023: Housing policy under CDU/SPD
Berlin's new CDU/SPD government aims to build 20,000 apartments per year while tightening tenant protections. Here is what the coalition agreement means for the property market.
Peter Guthmann
After the repeat election in February 2023, Berlin is governed by a CDU/SPD coalition. Their agreement sets different priorities than the previous left-leaning government. For property owners and investors, the document contains signals in both directions: faster construction on one side, tighter regulation on the other.
Faster construction: 20,000 apartments per year
The coalition's most ambitious target is up to 20,000 new apartments per year, including 5,000 social housing units. A planned "Faster Building Act" is meant to shorten approval processes, introduce deemed approvals, and digitise building authorities. The average duration of zoning plan procedures should drop to three years.
For owners and developers: legal barriers to loft conversions and adding floors to existing buildings are to be reduced. The government also plans to promote building apartments above supermarkets and car parks. In densely built areas like Mitte or Charlottenburg, this opens up possibilities on already sealed land.
Tenant protection: conversion ban and conservation areas stay
At the same time, the agreement locks in existing tenant protections. The conversion ban, which makes it harder to split rental buildings into condominiums, continues. Boroughs will receive support in designating new social conservation areas (Milieuschutz). Pre-emption rights are to be exercised again in favour of municipal housing companies once the legal framework is clarified.
A new monitoring body will check compliance with the rent cap. For investors, this means the market development in Berlin remains shaped by regulation.
Tempelhofer Feld and the expropriation debate
Two topics receive separate treatment. An international urban design competition will explore options for peripheral development of Tempelhofer Feld, the former airport. Housing there would be reserved for municipal companies and cooperatives.
On the Deutsche Wohnen & Co. expropriation referendum, the coalition is waiting for the expert commission's recommendation. If it deems expropriation constitutional, a framework law will be drafted, but it would only take effect two years after enactment.
Climate protection and construction
The coalition promotes climate neutral construction, timber building, and recycled building materials. Energy retrofitting is to follow a worst-first approach, starting with buildings that have the lowest efficiency ratings. The heating transition should remain socially balanced for both tenants and owners.
What the agreement means for investors
The coalition agreement sends mixed signals. New construction will be deregulated and accelerated. Existing stock remains subject to the same or tighter rules. Anyone investing in Berlin should understand the new framework for apartment buildings and resale apartments, and weigh the opportunities in new development against the regulatory risks in the existing portfolio.