Referendum on Expropriation Approaching with Vonovia CEO in the Spotlight
In a historic move, a referendum in Berlin, held citywide in 2021, successfully mandated action against corporate landlords who own large portfolios of rental housing. The referendum demanded that Berlin should use its legislative power to expropriate such companies, seen as responsible for rising rents and housing shortages.
In response, the Berlin city government presented draft legislation in July 2025 that proposes the expropriation of these corporate property holdings to implement the referendum's mandate. This legislation, a delayed political response to the referendum, represents a significant step towards city-level control of housing stock to combat affordability issues.
Vonovia, one of Germany's largest real estate companies and a primary target of these proposals, has expressed opposition to the expropriation due to legal and financial concerns. Rolf Buch, the CEO of Vonovia, has stated that the referendum is more of a wake-up call for fundamental changes rather than a direct threat to Vonovia's properties.
Despite the potential impact on their property holdings, Vonovia has not had a specific publicly detailed response in the cited materials for this 2025 law. However, their historical stance indicates opposition to expropriation efforts. Buch has dismissed the arguments of the initiative behind the expropriation campaign, stating they stir up sentiment and ignore tenant protection laws.
The referendum on expropriating residential properties from real estate companies with over 3,000 apartments in Berlin is scheduled for September 26. If the referendum passes, a legislative process would begin. Buch has reassured all Vonovia tenants that they have nothing to fear, asserting that the risk of losing an apartment for Vonovia tenants is low and rent increases under existing contracts are more of a perceived problem.
It's worth noting that the referendum does not automatically result in the expropriation of apartments. Buch has also asserted that the expropriation campaign ignores the need for private investment in housing. Vonovia is currently trying to take over its former competitor Deutsche Wohnen, a move that could further complicate the situation if the referendum passes.
Despite the challenges, Buch has ruled out resignation in case of another defeat in the takeover of Deutsche Wohnen, showing a determination to navigate these complex issues. As the referendum date approaches, the outcome and its implications for Berlin's housing market and large real estate companies like Vonovia remain uncertain.
[1] Source: Berlin Senate Department for Urban Development and Housing (BSB), Press Release, July 2025.
Other real estate companies, like Deutsche Wohnen, could also face the brunt of expropriation if the upcoming referendum on September 26 passes, as they too manage thousands of apartments in Berlin. The general-news media is closely following the developments in this complex interplay between politics, business, finance, and general-news, as it promises to reshape Berlin's housing market landscape.
