The Left Party won Sunday's Berlin state election with 25.5 per cent of the vote in the preliminary result, ahead of the Christian Democrats (CDU) on 19.1 per cent. This marks a major shift in the city's political landscape and a setback for Chancellor Friedrich Merz's ruling coalition.
The result could pave the way for lead candidate Elif Eralp to become Berlin's first mayor from the Left Party, which emerged from the former East German communist party. The party's victory came as the far-right Alternative for Germany (AfD) continued to make gains in eastern Germany.
Eralp campaigned heavily on Berlin's soaring housing costs, describing the rental situation as the capital's biggest social problem.
She pledged to pursue the nationalisation of private housing associations and said she would seek to remove property speculation from Berlin. The proposal follows a 2021 referendum in which 58 per cent of voters backed plans to legislate for the transfer of large private housing companies into public ownership.
The policy could involve around 220,000 housing units, although it remains unclear whether it will be implemented. SPD general secretary Tim Kluessendorf said nationalising the housing associations could cost about €20 billion ($23 billion).
An Infratest Dimap poll found that 37 per cent of respondents supported the measure.
The CDU finished second with 19 per cent, followed by the AfD on 16 per cent and the centre-left Social Democrats (SPD) on 12.1 per cent.
The AfD's result was its strongest ever in Berlin. The party also came first in a state election in Mecklenburg-Western Pomerania on Sunday, following its victory in Saxony-Anhalt on 6 September.
The results reflect a broader shift away from Germany's established centre-left and centre-right parties. Economic difficulties and uncertainty over the country's future direction were also prominent issues in Berlin, alongside housing costs.
The Left Party still faces challenges in forming a governing coalition. Both the SPD and the Greens have indicated they could be willing to work with the party.
Greens leader Felix Banaszak, however, said allegations of antisemitism involving parts of the Berlin Left Party would need to be addressed before his party could join a coalition.
The Left Party rejects accusations of systematic antisemitism and says it opposes all forms of group-focused hostility, including antisemitism, racism and sexism.
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