Why Building in Germany is Hardly Worth It Anymore
The demand for housing in Germany is significant, yet the construction industry is facing a crisis, resulting in a severe shortage of new apartments and houses. The state is identified as the primary culprit.
Living in Germany is becoming increasingly expensive, with affordable housing scarce, especially in large cities and metropolitan areas. While a surge in new construction would alleviate this issue, it is nowhere in sight, as observed by Capital editor Nadine Oberhuber. "It's not as if the industry is on the path to recovery," Oberhuber states in the Capital Wirtschaftspodcast. "The major problem is that new construction in Germany has become excessively expensive compared to existing housing stock."
Oberhuber, along with her team, conducted an in-depth analysis of the market for the Capital Immobilienkompass. Not only have material costs risen sharply, but regulatory requirements, such as those for sound insulation and parking spaces, have a significant impact on prices. "All construction standards need to be streamlined," Oberhuber asserts.
Given the challenges in new construction, many prospective buyers are turning their attention to existing properties. Although prices have also increased in this segment, opportunities still exist depending on the region, as indicated by the Immobilienkompass. "There are still cities where you can buy apartments surprisingly affordably," Oberhuber notes.
Novedades — Economy News
Former Billionaire René Benko Seeks Prison Carpentry Job Amidst Signa Collapse
Former billionaire René Benko, the architect behind the now-insolvent Signa Group, has been in pre-trial detention for over a year. He is now reportedly seeking to take up carpentry during his time in custody. His lawyer confirmed Benko's intention to work as a carpenter, explaining that
AI Bubble: Economist Sees No Soft Landing
Paul Kedrosky, an investor and research fellow at MIT, expresses significant concerns regarding the current trajectory of the AI sector. He asserts that an excessive number of data centers are being constructed across the USA, designed for the artificial intelligence industry, which vastly surp
Taxfix Nears Profitability, Reduces Losses & Eyes US Expansion
The Berlin-based tax startup Taxfix is making significant strides towards achieving profitability, having substantially reduced its annual losses. The company, which attained unicorn status with a valuation of one billion Euros in 2022, reported a deficit of 19.5 million Euros on revenues of 67
Retirement Planning: The Ideal Wealth for Every Age
Starting early with retirement planning can significantly ease later life. However, many individuals begin without a clear strategy. This article explores the ideal amount of wealth you should have accumulated at different stages of life to ensure financial security.
Irankrieg: Ölkonzerne verbuchen Milliarden-Zusatzeinnahmen trotz Konflikt
Deutscher Text (neu formuliert) Die aktuellen geopolitischen Spannungen, insbesondere der Konflikt im Iran, treiben die Ölpreise in die Höhe und bescheren den großen Ölkonzernen unerwartete Milliardengewinne. Experten prognostizieren, dass allein amerikanische Unternehmen in diesem Jahr üb
Dollar Weakness: Strategies for MSCI World Investors to Tackle Currency Losses
The U.S. dollar experienced a notable downturn following Donald Trump's inauguration. This depreciation resulted in financial losses for investors across Europe. A critical question arises: how advisable and effective is it to implement strategies aimed at hedging against such currency fluctuat