Who Owns the City? Analysis of Property Owner Groups and Their Business Practices on the Berlin Real Estate Market

The document is a comprehensive analysis titled "Who Owns the City? Analysis of Property Owner Groups and Their Business Practices on the Berlin Real Estate Market," commissioned by the Rosa-Luxemburg-Stiftung. The main author, Christoph Trautvetter, is an expert in public policy with a focus on housing and economic justice. The study consolidates years of research to address the opaque ownership structures in Berlin's real estate market, aiming to inform democratic decision-making regarding housing.

The study reveals a stark picture of property ownership in Berlin, highlighting that nearly half of the city’s apartments are owned by a small group of wealthy individuals, often operating through complex corporate structures. The largest landlord, Deutsche Wohnen, owns about 115,740 apartments, equivalent to 6% of the total market. The overall ownership landscape comprises municipal housing companies, private equity firms, and private individuals, with 49% of rental units owned by private individuals or companies.

The report underscores the growing economic disparities resulting from the real estate boom, where rents have increased at a pace far exceeding income growth. Between 2010 and 2019, rents in Berlin rose by 42% while incomes only increased by 4%. This disproportionate rise in rental prices contributes to a significant redistribution of wealth, favoring property owners over renters, particularly impacting younger individuals and those without inherited wealth.

The document advocates for more transparency in property ownership and calls for improved regulation to mitigate the negative impacts of the real estate market on housing accessibility. It highlights the urgent need for a registry of property owners and rents to enable informed policymaking. The study also discusses the role of housing cooperatives, which own around 188,000 apartments, and emphasizes their potential in promoting sustainable housing practices compared to profit-driven entities.

Several large private equity firms are identified as ruthless profit maximizers, prioritizing rapid returns over tenant well-being. Firms like Blackstone and Cerberus are noted for their aggressive tactics, including tax avoidance through complex corporate structures, which contribute to a lack of accountability and transparency in the rental market.

The report also acknowledges the role of community initiatives and tenant activism in challenging these practices, including movements advocating for the expropriation of large landlords to reclaim housing for public use. It provides a platform for tenants and responsible property owners to contribute to a more equitable understanding of property ownership in the city.

As the study concludes, it emphasizes the necessity of implementing targeted regulatory measures to address the systemic issues in Berlin’s housing market. The findings serve as a vital resource for policymakers, activists, and citizens seeking to foster sustainable housing solutions and combat the effects of financialization in the real estate sector.