The housing crisis in Germany is coming to a head as the completion of over 220,000 new-build apartments has been delayed. This deficit is particularly affecting the A cities. These are large metropolitan areas where demand is highest. This is according to the Bulwiengesa study "Residential Developments in Germany", which was commissioned by a real estate agency.
Between 2013 and 2023, only around 260,000 apartments were completed each year, while the demand up to 2028 is around 420,000 apartments per year. 155,000 of these apartments were built in the suburbs, although demand is highest in the cities. Rising rents are a direct consequence of unmet demand.
The current problems on the housing market are the result of uncertainties, delays and insolvencies in the project development market. Many construction projects are affected, which is exacerbating the housing crisis. According to the study, the start of construction on 141,797 apartments has been delayed or put on hold completely. In addition, 80,350 apartments already under construction have been delayed by an average of 11 months.
© immonewsfeed
