Germany's bold reform lets cities block property sales to extremists
German Government Plans Sweeping Reform of Building Code to Curb Extremist Property Purchases
The federal government is currently drafting a comprehensive reform of the Building Code (BauGB) designed to give municipalities significantly greater powers to intervene in the real estate market. Beyond traditional goals such as housing creation and urban development, a new focus has emerged: addressing extremist and criminal actors in the property sector. Critics have already dubbed the proposal a "belief-based vetting system" ("Gesinnungs-TÜV"). Here are the facts behind the debate.
Update, April 10
The current discussion was sparked by proposals from the Federal Ministry of Housing, Urban Development and Building (BMWSB), which would allow municipalities to intervene in property purchases—including cases where buyers pursue "anti-constitutional objectives." This provision appears in a draft bill obtained by KOMMUNAL, which we provide for download at the end of this article (174 pages, PDF).
The draft, dated April 1 at 2:31 PM (and confirmed as no April Fool's joke), aligns with earlier reports by T-Online, which suggested the government plans to amend the Federal Office for the Protection of the Constitution Act (BVerfSchG) to permit intelligence agencies to share data on potential buyers with local authorities.
The draft explicitly states:
"To enable the Federal Office for the Protection of the Constitution to disclose personal data to municipalities in cases covered by the new § 24(1)(9) of the draft Building Code, a separate legal basis for data transfer will be introduced under the Federal Office for the Protection of the Constitution Act (No. 10)."
Expanding Municipal Powers in the Real Estate Market
The proposed Building Code amendment is part of the government's broader housing strategy, aimed at accelerating planning procedures and boosting construction. At the same time, municipalities would gain additional tools to better regulate problematic local developments.
A key measure is the expansion of municipal preemption rights, which already allow cities and towns to step into existing purchase agreements if doing so serves the public good. Under the new plans, these powers would be significantly broadened, enabling stronger action against "slum properties" (Schrottimmobilien)—up to and including expropriation in extreme cases.
New Focus: Extremism in Real Estate
The most contentious aspect is § 24(1), which explores whether preemption rights could be used to block property purchases linked to extremist activities.
Security agencies have long observed a troubling trend: individuals or groups acquiring properties to use as meeting places, event venues, or safe houses. Many of these buyers are already under surveillance by constitutional protection authorities. The draft leaves open whether mere suspicion or an official designation would suffice—raising questions about how far this "ideological screening" might go.
The text states:
"§ 24(1)(9) of the draft Building Code introduces a new preemption criterion to prevent social hardship arising from the spatial impact oforganized crimeorright-wing, left-wing, or religiously motivated extremist activities. This also aims to counterneighborhood decline('trading down')—a process often linked to the emergence of slum properties."
However, the draft does not specify how such extremist intentions would be identified. Critics argue that mere suspicion should not be grounds for intervention in a constitutional state. A more charitable interpretation suggests the measure may only target individuals with prior relevant convictions.
Fierce Political Backlash Over "Belief-Based Vetting"
CDU housing policy spokesman criticizes draft law
Jan-Marco Luczak, the CDU/CSU parliamentary group's spokesman for housing and urban development, has voiced sharp criticism of the proposed legislation in an interview with t-online. He stated: "The government must be careful not to overreach with municipal intervention powers. We want targeted measures to combat slum properties, urban decay, and crime—not a flood of new regulatory tools that could be used to pursue arbitrary urban planning goals."
Sylvia Rietenberg, the Green Party's spokeswoman for urban development policy in the Bundestag, told the portal: "The Federal Ministry of Housing's plans to tackle slum properties appear so poorly coordinated that the CDU/CSU's housing policy spokesman already feels compelled to publicly oppose them."
Why the draft law marks a dangerous precedent
Yet the housing minister's legislative proposal represents a political first. The draft explicitly states: "If there is reason to believe that the buyer actively supports objectives contrary to constitutional principles, municipalities should be able to block the purchase through a right of first refusal." In plain terms, this means: Anyone suspected of holding anti-constitutional views could be barred from buying property. To enable this, the minister intends to amend the Federal Office for the Protection of the Constitution Act, requiring the agency to provide municipalities with the necessary intelligence to prevent such purchases.
For the first time, this would turn domestic intelligence into an actor in planning law—a role it has never held before. Until now, only technical and professional criteria have applied. Political or subjective attitudes have no place in what is otherwise a highly specialized legal framework.
Legal and practical challenges
If such provisions were actually implemented, they would raise serious legal questions. Municipal preemption rights are already subject to strict conditions today: They may only be exercised if there is a demonstrated public interest and must be justified with concrete reasoning.
Expanding these rights to include security-related considerations would fundamentally alter the instrument. Key issues would need to be resolved, including:
- How reliable intelligence on buyers must be
- How to prevent wrongful decisions
- What legal recourse affected parties would have
From a municipal perspective, such a regulation would also be demanding, as it would require new coordination processes with security authorities.
What is clear:
- The federal government aims to broaden preemption rights and empower municipalities.
- Extremism in the real estate sector is recognized as a genuine problem.
- However, no concrete legal provisions for buyer vetting have yet been made public.
[Download the ministry's draft proposal here (PDF, 1.4 MB).]
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