Berlin Eyes Rent Controls Again

Berlin Eyes Rent Controls Again

Berlin’s Left Party candidate, Elif Eralp, is signaling a significant shift in housing policy should she be elected Governing Mayor, proposing a renewed rent control measure and aggressively pursuing the expropriation of large private landlords. In an exclusive interview with “Der Tagesspiegel”, Eralp outlined plans to immediately reinstate rent caps on properties owned by state-controlled housing companies, a move previously implemented during the COVID-19 pandemic but abolished by the current CDU/SPD coalition government.

This policy would effectively freeze rents on over 300,000 apartments, representing a direct challenge to the current administration’s approach and a core element of the Left Party’s increasingly prominent campaign platform. Eralp emphasized that the housing affordability crisis will be the central theme of her campaign, underscoring its primacy over other policy areas.

Beyond rent control, Eralp is strongly advocating for the implementation of the 2021 citizen initiative “Deutsche Wohnen und Co. enteignen” which calls for the expropriation of approximately 220,000 apartments owned by major corporate landlords. While acknowledging that the full impact of such a radical step would not be immediately apparent, Eralp believes it is essential for ensuring long-term affordability.

The candidate’s proposals extend beyond direct intervention in the rental market. A newly established “task force” would be deployed to combat exploitative rent increases, while private developers and corporations would be mandated to designate at least one-third of their housing stock as affordable rental units, addressing concerns about a persistent shortage of accessible housing options. A strengthened state housing authority, would, according to Eralp, actively enforce existing legal violations within the housing sector.

The Berlin parliamentary elections, scheduled for September 2026, are already shaping up to be highly contested. Recent polling consistently places the Left Party in second place behind the CDU, following a significant surge in support evidenced by their victory in the recent federal elections within the city. Eralp’s bold proposals highlight a sharp ideological divide and suggest a potential reshaping of Berlin’s housing landscape, contingent on the electorate’s receptiveness to such sweeping interventions. Critics will likely scrutinize the feasibility and potential unintended consequences of these ambitious plans, particularly regarding their impact on investment in new housing construction and the overall health of the Berlin real estate market.