“An expropriation does not create a single new apartment”

Berlin The new Federal Minister of Construction, Klara Geywitz (SPD), wants to promote the rental-purchase model in Germany, in which citizens without sufficient equity can purchase state-subsidized apartments piece by piece through their rent payments. “I think these models are interesting, especially for the eastern German states,” said Geywitz in an interview with the “Tagesspiegel”.

“As is well known, East Germans inherit far less than West Germans, so many have less equity for their own property.” She will also talk to the federal states about other innovative models – including making real estate transfer tax more flexible, which has risen in recent years. “It would be a great relief if the real estate transfer tax were lowered on the first owner-occupied property that someone buys. Most people buy an apartment or a house once in their life. “