Conversion ban in Berlin
A strict ban on the conversion of rental apartments has been in force in Berlin since 2021. This is intended to prevent rental apartments from being divided up and sold as condominiums en masse – especially in tight housing markets. The basis for this is Section 250 of the German Building Code (BauGB), introduced by the Building Land Mobilization Act.
Accordingly, in areas with a tight housing market (which has been declared city-wide in Berlin), the establishment of residential property in existing residential buildings with more than five apartments is only permitted with official approval. In practice, this is tantamount to a ban, as the hurdles for approval are high and only certain exceptions are permitted.
What does that mean in concrete terms?
A landlord who owns an apartment building in Berlin may not simply divide it up into individual condominiums and sell them to investors or owner-occupiers, for example. Approval from the building authorities is required in advance for any conversion of rental apartments into condominiums.
Berlin has declared the entire city area to be a tight housing market by means of a conversion ordinance, meaning that the approval requirement applies everywhere. The regulation came into force in fall 2021 and was extended again at the beginning of 2025 – it is currently expected to apply until 2030 (as of 2025). The aim is to preserve rental housing and prevent speculative shortages through privatization.
Exceptions to the conversion ban
Despite the general prohibition, the law mentions some cases in which permission must be granted. The most important exceptions include
- Family members: If an apartment is to be sold to a family member of the owner (for the owner’s own use), the conversion must be approved. Example: An owner converts an apartment into property with permission in order to transfer it to his child.
- Sale to tenants: If at least two thirds of the tenants are to purchase their apartments, permission must be granted. This is intended to enable conversions in favor of the residents (tenant purchase).
- Inheritance cases: If the house is part of an estate and residential property is to be created for the benefit of co-heirs, this is also a mandatory reason for approval.
- Cases of hardship: In cases of particular hardship, the authority may allow a conversion, for example if the owner can no longer reasonably be expected to comply with the ban, taking into account the general interest. However, this must be interpreted very narrowly.
Other known restrictions – e.g. the so-called 5-year period for the sale of converted apartments as protection against termination for personal use – also continue to apply, but are not discussed in detail here. It is important to note that the declaration of partition remains invalid without approval.
Practical consequences for landlords
Anyone who owns an apartment building in Berlin and is considering dividing it into condominiums (e.g. to sell individual units, i.e. privatization) faces a high approval effort – in most cases it will not be possible de facto.
It is advisable to consider other strategies instead: Perhaps selling the entire property is an option, or keeping the house as an investment property. Incidentally, there were already strict conversion restrictions in social conservation areas (milieu protection) before Section 250 BauGB, but now these apply almost everywhere in Berlin.
Current status of the legal situation
The conversion ban under Section 250 BauGB is currently limited in time – originally until the end of 2025, but it can be extended by the federal government (and has in fact been extended for Berlin until 2030 by the state’s own ordinance). The instrument is politically controversial: Real estate associations criticize it as an encroachment on property rights, while tenants’ associations welcome it as protection against displacement. Landlords in Berlin should follow developments closely. If you are nevertheless planning a conversion, expert advice is essential.
Conclusion: The ban on conversions in Berlin considerably restricts the possibilities for utilizing rental properties. As a landlord, you should find out at an early stage whether a planned division can be approved at all. The answer will often be “no”. Do you have questions about the conversion ban or are you planning to sell your apartment building? Talk to us!
Frequently asked questions about the conversion ban
Yes, the entire urban area has been designated as a tight housing market – permits are required everywhere.
Z.E.g. when selling to family members, to tenants (with 2/3 rule), in the case of inheritance or in cases of particular hardship.
Currently until at least 2025, in Berlin de facto extended until 2030 by ordinance.
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