Germany has been in crisis for three years, but the recovery is not in sight. Apartments in the country does not have enough, but construction companies get less than less orders.
In the latest research by the IFO Institute, 57 percent of companies dealing with housing construction stated that there is not enough work, which is more than ever before. Expectations for the upcoming period remain gloomy.
The housing crisis seems to have become a normal condition, said the director of Klaus Wohlrabe research.
The residential industry in Germany went downhill in early 2022. It has experienced the lowest point a year ago and has not recovered significantly since then, in spite of occasional delays, SEEbiz reports.
The Business Climate Index in Housing in January fell to minus 43.2 points, 0.4 points below the December value.
Chronic bad condition is not the result of poor demand for new apartments, but unfavorable frame conditions, including high construction costs.
“We are quite difficult for us to remain optimistic,” said the director of the roof residential association Tim-Oliver Müller. “There is no shortage of apartments everywhere in Germany, but only in large cities.”
For example, 2022. More than 75,000 people were moved to Berlin, and only 15,000 new housing units were completed. “The gap between very high demand for accessible apartments and small offers encourages social tension,” Miller warned.
The outgoing government of Chancellor Olaf Scholz promised 400,000 new apartments at the beginning of the mandate each year, but it was neither close to achieving.
In 2023. A little less than 300,000 apartments were built, and IFO envisages that the number would fall to less than 200,000 in 2026. Years. Years. Years.
