Berlin, October 27, 2026

The state of Bavaria is preparing legislation that would allow the expropriation of rental housing only under narrow conditions, according to a report published on October 27, 2026.

At the heart of the planned law is the question of how the state can respond to an acute housing market without disproportionately restricting property rights. A tiered approach is therefore envisaged, under which other measures must expressly be examined first.

Accordingly, the expropriation of rental housing would only be permitted if its urgency could be demonstrated. At the same time, all other instruments would have to have been exhausted first, including expressly investments and the promotion of housing construction.

Strict conditions for expropriations

The planned mechanism thus places the burden of proof on authorities and companies. They would have to demonstrate that less drastic measures are insufficient before rental housing could be converted to state use.