In September 2023, residential construction in Germany reached a new low: according to the Federation of the German Construction Industry, the number of building permits fell by 29.7 percent to 19,300 apartments - the lowest rate since 2013. Chief Executive Tim-Oliver Müller expressed his concern about this continuing decline. He emphasized that neither political summits nor previous political initiatives have brought about a positive trend reversal. He therefore called for a more decisive response from politicians to counteract a further worsening of the housing shortage, especially in light of the unchecked influx of people into Germany.
The situation is exacerbated by the high number of construction projects that have been approved but not yet started (100,000 apartments). Investors are reluctant to start construction projects as the increased construction costs cannot be covered by the achievable rents. The construction industry has already identified opportunities to reduce rents by around 20 percent - for example through industrial, serial construction. The CEO called on the federal and state governments to take effective measures to make housing in Germany affordable again. Without additional measures, he assumes that the number of completions could fall below the 200,000 mark in 2025.
Tim-Oliver Müller reiterated his call for a nationwide reduction in land transfer tax and the standardization of state building regulations. He also hopes that the federal government will soon implement an interest subsidy program. Only by lowering refinancing costs for investors can the housing construction engine be expected to pick up.source: bauindustrie.de
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