Experts see a negative trend: over 10 percent of the planned apartments have been deleted

Experts see a negative trend: over 10 percent of the planned apartments have been deleted

According to a report by www.t-online.de, there is a worrying negative trend on the real estate market in Bavaria. More than ten percent of the planned apartments will not be built. This affects both private developers and housing companies oriented towards the common good in Bavaria. The Association of Bavarian Housing Companies assumes that more than ten percent of the originally planned 4,263 new apartments will be deleted. Apartment modernizations and energy-saving renovations are also affected, with more than one in five planned modernizations not being carried out.

Association director Hans Maier speaks of “historically poor conditions” for housing construction. High construction and financing costs make it difficult for companies to implement their projects economically. This is leading to a decline in residential construction and a drastic drop in building permits nationwide. Construction Minister Christian Bernreiter also expresses concern and is demanding sufficient funds from the federal government so that housing construction does not suffer from the austerity cuts.

As an expert in the real estate market, it is clear that these developments can lead to a shortage of affordable housing in the long term. If construction projects are canceled and modernizations are not carried out, the existing gap in the housing market may not be filled. This can have a long-term impact on housing prices and availability. This could also have an impact on the construction industry itself, as orders are declining and jobs are therefore at risk. It is therefore important that policy measures are taken to address housing challenges and support the sector.