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Expert opinion: pressure on the living market will continue to increase
Germany urgently needs more affordable apartments. In the coming years, according to experts, the situation will probably worsen despite some bright spots.
The pressure on the housing market is expected to exacerbate again in the coming years. The advice of real estate tunes warned against the presentation of its spring report. “We now have to go through a valley of tears,” said Ralph Henger from the Institute of German Economy. “This valley of tears is because we have a huge gap between what should be built and what is actually being built and will come onto the market in the next few years.”
According to the report, only around 210,000 newly approved apartments can be expected for 2024, a decrease of 45 percent compared to 2023.
The demand for affordable apartments, especially in large cities and metropolitan areas, will remain high in the coming years, the report says. The shortage of living space will result in rents, especially in coveted city sites, continue to rise.
“Tied up” by strong editions
“At the moment we actually feel tied up by strong requirements,” said Iris Schöberl, President of the Central Real Estate Committee. A liberation is needed this spring.
“Housing is just going through a difficult time,” said Federal Minister of Building Klara Geywitz (SPD). The effects of the Russian war of aggression on economic development are still noticeable – including housing construction. The federal government has taken targeted measures in the past three years to support the construction industry, according to Geywitz, including, for example, effective tax incentives.
According to the report, there are already some bright spots. Lower interest rates offer growth impulse and the financing conditions would also have improved slightly. By mid -2025, investments in residential construction could recover.
Further measures in politics and business necessary
The Council calls on politics and the economy to numerous other measures. “Please down with the regulation,” said Schöberl. Among other things, planning and approval procedures would have to be accelerated, according to the report. Here, the municipalities must be accelerated in the obligation through digitization, reduction in bureaucracy and more staff in building authorities.
In addition, it is important to reduce the costs in housing construction, for example through stronger promotion of standardized construction processes. Housing in Germany is currently the most expensive in Germany.
In addition, incentives are needed for investments. Many small -scale funding programs of the past few years have not led to the desired impulses. Structural reforms are therefore required, which in addition to funding programs also take a look at tax law.
dpa
Source: Stern
