“Yes” came out of the referendum held in Berlin to put a stop to rent increases

In Berlin, which has a population of 3.6 million, approximately 1.8 million registered voters went to the polls for the 'expropriation of housing' with the general elections.

In the non-binding referendum to bring a public-focused solution to the housing problem, approximately 56.4 percent of the voters voted yes and 39 percent voted "no" for the expropriation of more than 240 thousand apartments from real estate companies.

While the referendum held in Berlin to vote on the expropriation of private real estate companies with more than 3,000 residences in accordance with Article 15 of the German Constitution and transferring their assets to public ownership, is a recommendation to the state government, the results are expected to put pressure on politicians and real estate companies.

Average rental prices in the capital city, where 84 percent of the population living in the city live in rent, have increased by 86 percent since 2010.

Meanwhile, the decision of the Berlin state government to freeze rents for 5 years from 2020 (the Mietendeckel Law) was annulled in April by the Constitutional Court as unconstitutional.

Since the decision, protests have been held in the city against rent increases.

During the 2004 privatization period in Berlin, around 100,000 houses were sold to real estate companies such as Vonovia and Deutsche Wohnen at 1,100 euros per square metre. Today, the square meter price of these houses is over 3 thousand euros.

Vonovia, Germany's largest leasing company, had agreed to acquire the number two Deutsche Wohnen on the market for around 18 billion euros. Vonovia and Deutsche Wohnen had already had to sell 14,750 flats to municipal housing companies for the mergers to be approved. The companies own 550 thousand apartments with a value exceeding 80 billion euros, mostly in Germany.

Vonovia Chief Executive (CEO) Rolf Buch said in a statement that they wanted a constructive solution to the housing shortage in Berlin after the referendum.

"With the new state government and relevant social institutions, we are ready to tackle the challenges in the Berlin housing market," Buch said. gave the message.