Vonovia Falls on Report Berlin Coalition Eyes Large-Landlord Expropriation

3-line summary

• Germany's Greens, Social Democrats, and Left Party released an exploratory paper for Berlin's next Senate proposing expropriation of landlords owning 10,000-plus units, Frankfurter Allgemeine Zeitung reported; the plan is not yet finalized policy, with legislation targeted by mid-2028, and a 2023 expert panel found expropriation legally possible under Germany's Basic Law Article 15 but left open whether the property-rights interference would be proportionate.
• The proposal caps compensation at 16 billion euros contingent on fiscal sustainability, excludes homes built after January 1, 2021, cooperatives, and non-profits, and would affect about 150,000 units, versus the 240,000 estimated under the original 2021 referendum's 3,000-unit threshold; Berlin's state audit office calculated in 2024 that market-value compensation could reach up to 40 billion euros, against the city's roughly 70 billion euros in current debt.
• Vonovia, which owns about 140,000 units in Berlin as of end-2025, would be most affected; other landlords above the 10,000-unit threshold include Heimstaden Germany (about 20,000 units), Adler Group (about 17,000 units), and Covivio's German unit. Vonovia shares fell 2.6% following the report.

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