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ARTICLE · 16 APRIL 2025

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Coalition Agreement For New German Government: Real Estate Industry Implications

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On 9 April 2025, the Christian Democrats (CDU and CSU) and the Social Democrats (SPD) announced an agreement to form a new government in Germany and presented their coalition agreement (Koalitionsvertrag).

GermanyReal Estate and Construction
Christian Schede
Christian Schede
Florian Rösch
Florian Rösch
Johann-Frederick Schuldt
Johann-Frederick Schuldt

On 9 April 2025, the Christian Democrats (CDU and CSU) and the Social Democrats (SPD) announced an agreement to form a new government in Germany and presented their coalition agreement (Koalitionsvertrag). The CSU has already approved the agreement, while the CDU and SPD plan to finalize their approval the end of April following party conventions and a member survey. The new chancellor is expected to be elected in early May, with the new federal government taking office shortly thereafter.

The coalition agreement includes several key initiatives impacting the real estate industry:

Rent Control and Tenant Protections

  • Prolongation of the rent price brake (Mietpreisbremse) for new lettings by four years, through the end of 2029.

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