The Managing Director of the German Property Federation (ZIA), Aygül Özkan, explained that the real estate industry expects a continuing shortage of apartments in the coming years. The German government's target of building 400,000 new apartments per year by 2025 is unlikely to be achieved.
Özkan emphasized that the coalition government had provided an additional billion euros for low-interest loans in January to promote new construction. Nevertheless, there is a lack of affordable housing, especially in the middle segment, which should be accessible to professional groups such as nurses and police officers. Increased material costs, higher wages for construction workers and the turnaround in interest rates are making projects unprofitable for investors and developers.
Building permits fell by around a quarter last year and the mood in the industry, as measured by the Munich-based Ifo Institute, is the worst it has been since reunification. In order to boost the construction industry, Özkan called on the federal states to reduce land transfer taxes, simplify building regulations and offer state loans at reduced interest rates. She emphasized that it is important to take action now, as housing is a basic need, comparable to bread and water.
Source: Focus online
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