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

Overview of the Study and Its Creators

The study “Who Owns the City?” is a comprehensive analysis commissioned by the Rosa‑Luxemburg‑Stiftung, a German political foundation dedicated to research on social justice, public policy, and democratic participation. Lead author Christoph Trautvetter, an external manager of the “RLS Cities: Who Owns the City?” project, holds a master’s degree in public policy from the Hertie School of Governance and a background in forensic investigation, tax justice, and advisory work for the European Parliament. The research team includes Stefan Thimmel and other experts in housing, urban policy, and investigative journalism.

Scope and Methodology of the Berlin Real Estate Market

The investigation focuses on Berlin’s residential real estate market, compiling data from the 2011 Building and Housing Census, the 2018 micro‑census, commercial databases, tenant surveys, and company annual reports. Researchers manually traced ownership through land‑register entries, transparency registers, and corporate filings across Germany and offshore jurisdictions. The study identifies four main owner groups—private equity firms and institutional investors, private real‑estate companies, public/co‑operative/non‑profit entities, and private individuals/commonholds—and breaks them down into eleven sub‑groups. Over 200 owners were analyzed, representing more than 1.9 million apartments.

Key Ownership Figures and Market Concentration

• Approximately 115,000 apartments (6 % of Berlin’s stock) are owned by Deutsche Wohnen, the city’s largest listed real‑estate company.
• The “Big 5” listed firms (Deutsche Wohnen, Vonovia, ADO Properties, Covivio, Grand City Properties) collectively hold about 195,000 apartments (≈10 % of the market).
• Private equity firms such as Blackstone own over 3,000 units, representing a significant profit‑maximising segment.
• Municipal housing companies (Gewobag, Degewo, HOWOGE, Stadt und Land, Gesobau) together manage roughly 270,000 apartments (≈14 % of the total).
• Housing cooperatives own about 188,000 units (≈10 %).
• Private individuals and commonholds control roughly 571,000 apartments (≈30 %).

Financial Performance and Yield Insights

Yield calculations show that some private equity owners achieve annualised returns exceeding 20 % on capital, far above the 1–2 % yields typical for municipal housing companies. Institutional investors report yields of 3–8 % for residential assets, while listed firms report dividend yields ranging from 4.4 % to 17.2 % (Deutsche Wohnen). Low interest rates have amplified profits for both private and public owners, while many renters face rent increases outpacing income growth.

Impact on Tenants and Housing Affordability

The study highlights that Berlin’s rent‑control measures have limited effects on large private owners, who often use “share deals” and tax‑haven structures to avoid transparency and taxation. Approximately 90 % of Berlin residents rent, with only 16 % owning their home. Small‑scale landlords (owning ≤5 apartments) account for the majority of owners but generate a minor share of total rental income. Large private owners and institutional investors reap the bulk of rental revenues and capital appreciation, contributing to a wealth redistribution from low‑income households to high‑net‑worth investors.

European Context and Sustainable Housing Implications

Berlin’s ownership pattern mirrors broader European trends where financialisation of housing concentrates ownership among a few large firms and funds. The study argues that transparent registries of building ownership, stricter regulation of “share deals,” and tax reforms on passive income are essential to curb speculative profit‑maximisation and promote long‑term, socially responsible housing provision. Enhanced data availability would enable policymakers and civil society across Europe to monitor ownership structures, assess housing affordability, and design interventions that align with sustainable urban development goals.

Recommended Policy Measures for a Fairer Market

1. Establish a publicly accessible registry of building and apartment owners, including beneficial ownership data.
2. Regulate subdivision of multi‑tenant buildings and enforce pre‑emptive purchase rights for municipal housing companies.
3. Implement progressive taxation on high passive rental income and capital gains from real‑estate holdings.
4. Strengthen tenant participation rights in cooperative and municipal housing companies.
5. Promote expropriation mechanisms at realistic prices for properties used primarily for speculative profit.

Outlook and Ongoing Research

The Rosa‑Luxemburg‑Stiftung plans to expand the “Who Owns the City?” methodology to other German cities and European capitals, creating a comparative database of ownership structures. Continuous updates will track market shifts, new acquisitions, and the impact of policy changes, providing a valuable evidence base for advocates of sustainable, equitable housing across Europe.