Federal election: Which programs support the purchase of real estate?

An analysis of the election manifestos has shown that the topic of "housing" is important to all parties, which is not surprising given its relevance. What is surprising, however, are the sometimes very different priorities. In general, it can be seen that the parties on the right - CDU/CSU, FDP and AfD - primarily emphasize the promotion of private housing construction, while the parties on the left - SPD, Greens, Die Linke and BSW - are more focused on social housing construction and rent control. In detail:

CDU/CSU: Strengthening home ownership and reducing bureaucracy
The CDU/CSU is planning various measures to promote home ownership and improve the housing situation. This also includes real estate transfer tax, which is actually a matter for the federal states. The CDU/CSU proposes that the federal states grant an allowance of 250,000 euros per adult and 150,000 euros per child for the first-time purchase of owner-occupied property. The CDU/CSU is also seeking a fundamental reform of building and regional planning law in order to reduce bureaucratic hurdles. Permanent construction is also to be made possible in areas where there were previously only exceptions. In order to stimulate new construction, a time-limited degressive special depreciation allowance for affordable housing is to be introduced. In addition, the costs of energy-efficient renovations should be deductible for inheritance and gift tax purposes. However, new standards that increase construction costs without significant added value are not planned.

FDP: Tax relief and accelerated approvals
Like the CDU/CSU, the FDP wants to improve tax depreciation in residential construction, continue the special depreciation under the Growth Opportunities Act and take action against government cost drivers with an immediate moratorium on construction costs. The FDP also wants to speed up approval procedures, for example by dispensing with environmental reports. An allowance of EUR 500,000 per person for land transfer tax for the first owner-occupied property is to be significantly higher than that of the CDU/CSU, with the allowance increasing by EUR 100,000 for each child. In addition, it should be possible to use funds from company pension schemes for the purchase of residential property, following the Swiss model.

AfD: Radical tax reforms without clear counter-financing
The AfD goes the furthest in its proposals. It wants to completely abolish the real estate transfer tax for owner-occupiers and also eliminate the property tax. Instead, the real estate transfer tax for buyers whose main residence is outside the EU is to be increased to 20 percent. The AfD also plans to abolish ideologically motivated burdens such as the EEG levy, CO2 tax and the Building Energy Act. These measures could actually boost private housing construction, but it remains unclear how the financial gaps that this would create in the budget are to be closed, as land transfer tax is a matter for the federal states.

SPD: Promotion of existing properties and models for locals
Two terms in particular stand out in the SPD's election manifesto: "Young buys old" and "models for locals". The first refers to the subsidy program for the purchase of existing properties, which has been running since September last year and offers low-interest KfW loans to families with underage children and a low to medium income. The SPD plans to continue this program. The local residents' model is intended to give municipalities the opportunity to offer local families and individuals discounted building land in order to strengthen social cohesion and counteract speculative price increases. The SPD does not comment on land transfer tax in its election manifesto, nor do the Greens.

Greens: Relief for ancillary costs and climate-friendly premiums
Compared to the previous parties, the Greens go into more detail on social housing and the rent freeze, but without focusing directly on private housing. Nevertheless, they mention two points: Firstly, buyers are to be relieved of ancillary costs such as estate agent and notary fees, without this being explained in more detail. Secondly, the Greens are planning a housing construction premium that increases with inflation and includes a climate component to make it easier for people on low incomes to buy their own home.

The Left: State housing construction and far-reaching market interventions
The Left considers housing construction to be a state task. Its program states: "Reduce rents", "Push back investors", "End vacancies". It proposes that the occupation of housing that has been vacant for at least one year should lead to a permanent right of residence, unless the owners offer the apartments at socially acceptable rents. The party also plans to transfer real estate companies with over 3,000 apartments into public ownership and to invest 20 billion euros annually in non-profit housing construction. One notable point is the end of forced accommodation of refugees in mass housing in order to create regular, needs-based housing for these people. However, the Left does not mention that this point could be rather counterproductive for housing prices and rents.

Alliance Sahra Wagenknecht (BSW): mixture of tenant protection and promotion of ownership
The terms "rent brake" and "social housing" are frequently used in the program of Alliance Sahra Wagenknecht (BSW). In contrast to the Left, however, private housing construction is not completely ignored. The BSW plans to exempt families from land transfer tax when purchasing owner-occupied residential property for the first time. The reform of property tax is also criticized as leading to considerable additional burdens for many citizens. The BSW would like to counteract this with a moratorium on burdens for "normal homeowners".

In summary, it can be said that these are the most important points from the parties' election manifestos for the Bundestag elections in the area of housing. Ultimately, voters will have to decide for themselves how they feel about them.

Source: Hüttig & Rompf, 06.02.2025