After the left's election victory in Berlin, Vonovia boss Luka Mucic refers to a survey that shows that expropriations do not find a majority among the population. What he demands instead.
Real estate manager Mucic: “Socialization does not create a single new apartment.” Photo: Sebastian Christoph Gollnow/dpa
Dusseldorf. Vonovia boss Luka Mucic sees no majority for their expropriation plans after the left's victory in the Berlin House of Representatives election. “According to a recent post-election survey, the absolute majority of Berliners are against the expropriation of large private housing companies,” Mucic told the Handelsblatt. What is needed are more new buildings, reliable framework conditions and cooperation. “Socialization does not create a single new apartment.”
During the election campaign, the Left spoke out in favor of the expropriation of large real estate companies. The party, whose top candidate Elif Eralp could now become governing mayor, is citing the referendum in September 2021. At that time, 58 percent of Berliners voted to draw up a bill to expropriate large real estate companies. However, such a draft is not yet available.
In the post-election survey by Infratest dimap on Sunday, a majority of Berliners spoke out against expropriating private housing companies and compensating them for it. 51 percent rejected this, 37 percent supported it.
Shortly before the election, Mucic described his company as “part of the solution” with a view to the housing shortage in the capital. Vonovia started the new building. “We currently have around 1,000 new residential units under construction in Berlin, and we have built 6,000 since 2013. That is of course a drop in the ocean, but it is still a contribution that we are making,” said the 55-year-old.
Experts still see major hurdles
The Left wants to transfer 220,000 apartments into the public sector. Vonovia and its subsidiary Deutsche Wohnen own around 138,000 apartments in Berlin and the surrounding area. Eralp also announced tougher action against speculation on the housing market, for example through measures against rent usury. “When the left governs, people socialize,” emphasized the 45-year-old on election evening.
During the election campaign, the Greens were open to the expropriation of large housing companies, but they still see many unanswered questions. The SPD had clearly positioned itself against the Left's plans.
Demonstration in Berlin: The election campaign revolved largely around the issue of rental costs. Photo: IMAGO/Jochen Eckel
Michael Voigtländer from the German Economic Institute sees a greater risk of Vonovia being socialized: “The Left now sees its demands confirmed,” said the real estate expert.
However, there are two major hurdles: First, a coalition must be formed. An alliance between the CDU, the Greens and the SPD is also possible. In addition, a federal law could be passed that sets high requirements for associations. “In this respect there is still no clarity,” said Voigtländer.
Chancellor Friedrich Merz confirmed on Monday that he wanted to quickly implement a federal law against expropriations. “We have the first draft texts available, agreed upon in the coalition between the Ministry of Justice and the Ministry of the Interior, we will move forward with the legislative proposal,” he says of plans to ban the nationalization of housing companies. “The main thing is to send a clear message to international investors: There are no expropriations of private property in Germany.”
Vonovia boss Luka Mucic said that the company was still willing to talk to the left: “Vonovia is also available to a future Berlin state government as a constructive discussion partner and sees itself as part of the solution to relax the housing market in Berlin through new construction and affordable rents.”
According to its own information, Vonovia rents out apartments in Berlin for an average of 8.26 euros per square meter. The new contract rents are therefore 10.80 euros. Around 1,000 apartments are currently under construction.
The election results initially had a strong impact on Vonovia shares on the stock market. The shares fell by 2.2 percent to 17.31 euros by late morning. They thus reached the level of June 2023. As the day progressed, the shares recovered somewhat, but ended trading with a loss of 1.2 percent - while the German leading index Dax gained a total of 1.1 percent.
Related topics
VonoviaBerlinThe LeftGerman HousingSPDGoldman Sachs
The election result did not come as a surprise, said a trader. The concerns about negative consequences, especially for Deutsche Wohnen and Vonovia, are probably already partly priced in. In addition, the political uncertainty in Berlin is hitting the real estate industry in an already tense situation. The mood has recently deteriorated due to the increased interest rates. The US investment bank Goldman Sachs downgraded Vonovia shares at the beginning of the month, citing the burden of higher interest rates.
More: Why are Vonovia shares performing so poorly on the stock market?
First publication: September 21, 2026, 1:21 p.m.
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