Friedrich Merz, the leader of Germany’s Christian Democratic Union (CDU), has issued a formal warning against proposals circulating in Berlin to expropriate property from large-scale landlords. The debate centers on a long-standing initiative aimed at addressing Berlin's severe housing shortage and rising rental costs by transferring residential units owned by major real estate companies into public ownership.

Merz characterizes the move as an attack on private property rights, arguing that such measures would undermine investor confidence and fail to solve the underlying issue of housing supply. Proponents of the seizure, including various local activist groups and some political factions, argue that large corporate landlords prioritize profit over tenant stability, necessitating state intervention to stabilize the market.

While the Financial Times reports on the warning as a significant political development, the discourse highlights a fundamental divide in German economic policy. The proposal to seize property is viewed by critics as a radical departure from market-based solutions, while supporters view it as a necessary tool to combat gentrification. Currently, the legal feasibility of such a seizure remains under intense scrutiny, with constitutional experts divided on whether the state can legally force the sale of private assets for the public good. The situation remains fluid as Berlin’s local government navigates the pressure from both housing activists and the business community.