Red-green-red government will secure 70 million euros for real estate pre-purchase law of the districts in the 2022/2023 double budget

Red-green-red government will secure 70 million euros for real estate pre-purchase law of the districts in the 2022/2023 double budget
The House of Representatives has provided a total of 70 million euros in a double budget for the years 2022/2023. This sum was covered if a district wants to make use of its real estate pre-purchase right. The red-green-red majority in the House of Representatives decided to provide these funds for potential real estate purchases. However, there are certain restrictions that result from a judgment of the Federal Administrative Court of 2021
The Federal Administrative Court has set clear requirements for the exercise of the right of first refusal in its judgment. The districts may only make use of their right of first refusal if the property is in a milieu protection area or is threatened by conversion into condominiums. In addition, strict criteria must be fulfilled so that the exercise of the right of first refusal is lawful.
The 70 million euros covered should therefore serve to provide the districts of financial resources in order to be able to act in the event of legitimate advance cases. By acquiring real estate, the districts can influence the design of the city and ensure that the living situation is preserved for all population groups.
With the money, for example, the purchase of apartments that are threatened by luxury renovations is possible. This can prevent a displacement of low -income population groups. The acquisition of apartments in milieu protection areas can also help to ensure social mixing and to contain the impending gentrification.
Overall, the provision of the 70 million euros is an important measure to give the districts the opportunity to exercise their right of first refusal and to promote social housing and the preservation of the urban structure. It remains to be seen which concrete real estate purchases can be made in the coming years and what influence this will have on the urban development of Berlin.