Berlin's far-left leader Elif Eralp, whose party Die Linke achieved strong election results, has pledged to seize 200,000 apartments from corporate landlords to address the city's affordable housing crisis. The controversial proposal reflects Berlin's transformation from an inexpensive city to an increasingly expensive one, with the party set to lead a coalition government alongside centre-left partners. However, the plan has provoked stern opposition from business leaders and conservative politicians who warn of severe market disruption.

Eralp remains committed to the expropriation despite estimates that the policy would cost around €20 billion (£17 billion). Business leaders, including renovation firm executive Emmanuel Heisenberg and Vonovia's chief executive, have warned the move would create "huge chaos" and discourage private investment in new housing construction. Chancellor Friedrich Merz has predicted "devastating effects" on foreign investment and indicated he expects swift legislation to prevent expropriations. Potential coalition partners have cautiously expressed willingness to negotiate but have demanded that Eralp address longstanding accusations of antisemitism against some Berlin party branches.