REALWorld Law

Sale and purchase

Expropriation/compulsory purchase

Is expropriation (compulsory purchase) possible in this country?



Expropriation is possible but only where specific legislation or an ordinance related to that legislation permits it. Expropriation is only allowed when it is necessary in the public interest. The state must pay compensation to the relevant party.

In Berlin, some political parties are discussing the expropriation of housing space owned by large housing companies due to constantly rising rents or the socialization of the respective companies. According to an expert opinion published 28 June 2023, such a project would be constitutional. In an initial referendum in 2021, the majority of Berlin citizens voted in favour of the project. The current state government must now draw up a corresponding law. However, the Federal Constitutional Court is yet to rule on the constitutionality of the project.