Berlin expropriations study says it would not ease housing shortage

BERLIN, Sept 29 (Reuters) — Expropriating large residential landlords in Berlin would not ease the city's housing shortage and could make its rental market more rigid, according to a study by the Kiel Institute for the World Economy published on Tuesday. Elif Eralp, the far-left leader pushing to take over as mayor of Berlin, has pledged to expropriate more than 200,000 housing units from corporate landlords in a campaign that made the party reach its best result in the German capital in this month's election.

Here are the key points from the study: If funds required to compensate companies such as Vonovia were instead invested in construction, Berlin could build up to 71,000 additional apartments by 2045, the economic institute said. 7% below levels otherwise expected by then. 6 billion), although compensation could be around half that amount, the study said. "What matters is not who owns the apartments, but whether new ones are being added," said co-author Jonas Zdrzalek.

State ownership would widen the divide between tenants with regulated existing leases and prospective renters, reducing mobility and worsening inefficient use of housing, the study said. com)