Berlin Buys Apartments for $2.9 Billion to Quell Housing Anger

Berlin agreed to buy 14,750 apartments from Germany’s two biggest landlords for 2.46 billion euros ($2.9 billion) as public pressure to counter rising rents intensifies.

Vonovia SE and Deutsche Wohnen SE are selling the units as part of their effort to merge. The deal includes a commitment from the two companies to limit rent increases until 2026 and build 13,000 new apartments to try to address a housing shortage and ease public concerns about rising living costs.

“The return to municipal ownership gives tenants the necessary security that their apartments will be permanently in the low-cost segment,” Matthias Kollatz, ...