Financial expert analyzes: BImA and the housing crisis - Why politicians' hopes could be disappointed.

Financial expert analyzes: BImA and the housing crisis - Why politicians' hopes could be disappointed.

According to a report by www.faz.net,

The current housing construction figures were published around the middle of the month. These showed that the construction crisis worsened further in September. The number of new apartments approved has only been 195,000 since January, which corresponds to a decline of more than 28 percent compared to the previous year. The target number of 400,000 new apartments per year has therefore become a long way off.

A look at the figures from the Federal Real Estate Agency (BImA) shows that the authority will only be able to build around 6,000 to 8,000 apartments in the coming years. This is in stark contrast to the approximately 700,000 missing apartments currently estimated in Germany. The housing shortage is therefore not being adequately alleviated, especially since many calculations are no longer tenable due to increased interest rates and building prices. This development has resulted in several large project developers having to file for bankruptcy and construction sites coming to a standstill.

The BImA focuses primarily on building apartments for so-called “housing benefit recipients” such as civil servants, judges and soldiers. However, the sale of land to municipal housing companies expands the circle of beneficiaries. Nevertheless, the BImA makes it clear that the potential of the land already planned has been exhausted and additional areas could only be available in isolated cases.

Overall, these developments highlight the ongoing challenge facing the housing market in Germany and how key state authorities such as the BImA can only make a limited contribution to solving the problem. The continued strong increase in demand is met with limited supply, which in the long term can lead to further rising prices and an exacerbation of the housing shortage.