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.
