Right of first refusal – a common concern in Berlin, Hamburg and Munich
It was only in November that Germany’s Federal Administrative Court instructed state authorities to stop exercising their right of first refusal as an instrument against potential speculation – a success for property owners. Now the mayors of Germany’s largest cities are following suit: In response to the Federal Administrative Court’s ruling, Berlin, Hamburg and Munich have launched an initiative to strengthen municipalities’ rights of first refusal. The mayors say they want to safeguard the supply of affordable rental housing and protect social preservation areas from speculative real estate companies. Together, the three mayors have called for an expeditious solution and a new regulation governing their rights of first refusal from the federal government. According to the IVD, such a reaction was to be expected. But the efforts to secure new legislation comes at the expense of urgently needed new construction.