Berlin’s Senate launches the Alliance for New Residential Construction

The shortage of available (and affordable) housing on Berlin’s residential real estate market has prompted the city’s Senate to launch an alliance with municipal districts, cooperatives, real estate companies and industry associations. The alliance’s members all signed a 22-page agreement at the end of June and committed to the goals of creating 100,000 new apartments by the end of 2026, significantly simplifying building permit procedures, and easing the housing burden for low-income households. The necessary development plans should be in place within three years, and funding of 740 million euros per year has been earmarked in the Senate’s budget for 2022 and 2023 to promote social housing. The major housing companies, including Vonovia, also promised to ensure that 30 per cent of all re-rentals go to tenants with housing entitlement certificates. Franziska Giffey (SPD), the governing mayor, expects more signatories to join in the next few months.