Clifford Chance
New Deal? The Incoming German Government's Coalition Agreement and its Legal Implications for the Real Estate Sector
7 December 2021
The likely new German government coalition between the Social Democratic Party (SPD), the Greens (Bündnis 90/Die Grünen) and the pro-business Free Democratic Party (FDP) presented its coalition agreement for the upcoming legislative period (2021-2025) on 24 November 2021. It sets out a number of initiatives relating to the construction and property sectors, including residential construction projects and the introduction of a new payment arrangement for heating costs in the rental sector ("Teilwarmmiete"), as well as further changes to the recently overhauled statutory framework for real estate transfer tax. The new coalition also plans to encourage digitalisation across the board in order to help effectively implement these strategies.
The intention is also to create a new ministry for construction and housing, likely to be controlled by the centre-left SPD, to help meet the targets set out in the coalition agreement.
