Rent madness in Berlin | Vacancy in Neukölln: Sanctions threaten to be in vain

High fines were imposed on the owner company of a building on Donaustrasse in Neukölln's Rixdorf district, but these cannot be collected. Photo: dpa/Paul Zinken 122,000 euros fine for violating the obligation to cooperate, issued by the Investitionsbank Berlin (IBB). In addition, there are sanctions from the Neukölln district office totaling almost 600,000 euros for violating the ban on misappropriation. At least theoretically, the Berlin administration is showing a tough hand in the case of a company owning a building in the Neukölln district. But the penalties could be in vain because the company is in preliminary insolvency proceedings.

The building at Donaustraße 68 to 70b in Neukölln's Rixdorf neighborhood last made headlines at the beginning of 2026: 36 of 40 apartments were empty at the time. The house, built in 1985 and located right next to an idyllic neighborhood garden, was purchased by real estate developer Ziegert in 2015 and then renovated until 2021. The apartments were then sold as expensive condominiums in accordance with the Ziegert business model. However, the apartments are actually considered social housing until the end of 2027. This means that there is an occupancy restriction for them and only tenants with a certificate of occupancy are allowed to move in. According to research by the “Tagesspiegel” from October 2024, Ziegert had stipulated in purchase contracts that he would be liable for possible sanctions. If a person who is not entitled to WBS moves into a social apartment, fines may follow.

And what does it look like now? Neither the IBB nor the responsible Neukölln housing office know this. Both institutions most recently have the occupancy status from July 2025, as the Senate Department for Urban Development reported in response to a written request from Green MP Katrin Schmidberger, who has now left the House of Representatives. Accordingly, 34 of the 40 residential units were empty at the time. Two residential units were rented. After all, these two apartments were rented according to the occupancy conditions.

The IBB imposed the fine because of the owner's violation of his duty to cooperate. The first fine notice was issued in June 2025. At that time, the IBB was still demanding a total of around 473,000 euros. After judicial review by several instances, the amount shrank to the aforementioned 122,000 euros. This fine decision only became legally binding on September 3, 2026. The Neukölln district's monetary benefit notices, which now demand a total of around 600,000 euros, were issued in February 2026 and are not yet legally binding as objection proceedings are ongoing. In addition, there is an ongoing amount of almost 33,000 euros per month.

The slow grinding wheels of the administration and judiciary now mean that the fines cannot be collected. The Ziegert Group filed for insolvency in March 2025. And for the current owner of the building on Donaustrasse, who in the published Senate response “for data protection reasons” was only named “H. GmbH & Co«, a provisional insolvency administrator was appointed in April 2026. Therefore, there are currently no options for enforcing the now legally binding fine decision, according to the urban development administration. Previously, the administration's hands were tied: »Enforcement of a fine requires its legal force. This was prevented in each case by the continuous filing of legal remedies.”

Is insolvency proceedings a means of avoiding sanctions? The urban development administration reports that there is no evidence that the insolvency of a property company was specifically used as an instrument. "In principle, however, insolvency can make the actual enforceability of monetary claims, fines and cash payments considerably more difficult, since corresponding claims in insolvency proceedings can usually only be asserted as insolvency claims." It is therefore quite possible that in the case of Donaustraße 68 to 70b no one will have to pay for the violations in the end.

This does not affect the fact that the insolvency proceedings have no influence on the character of the apartments as social housing, even if there is a change of ownership. “The rent and occupancy restrictions in place until December 31, 2027 will generally remain in effect even in the event of a sale from the insolvency estate,” says the urban development administration. From then on, only the usual rules for tenancy agreements apply.

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