Financial expert warns of crisis in East German housing construction in 2024

Financial expert warns of crisis in East German housing construction in 2024

According to a report by www.morgenpost.de, the East German construction industry is facing a challenge, particularly in residential construction. The increased building interest rates and high construction prices have led to a decline in new orders and building permits, which has a negative impact on the future prospects of the housing market. However, overall sales figures are not that bad, although current price developments and declining orders must be taken into account. A majority of construction companies expect falling sales in 2024, which could lead to a potential increase in short-time work and even layoffs.

The situation in the East German construction industry is therefore ambivalent, with residential construction being particularly affected. The decline in building permits may impact future construction activity and lead to a shortage of housing. This could potentially lead to rising property prices and a tight housing market situation.

As an expert in the real estate market, it is important to consider these facts and analyze the possible impact on the market. A decline in housing construction could lead to an imbalance between supply and demand, which in turn could affect property prices and housing availability. Companies and investors in the real estate market should keep an eye on these developments and adapt their strategies to prepare for potential changes. It remains to be seen how the situation in the East German construction industry will develop.

The Eastern Construction Industry Association, which represents the interests of 260 construction companies with around 20,000 employees in Berlin, Brandenburg, Saxony and Saxony-Anhalt, is facing major challenges in view of the current situation in housing construction.

Source:
www.morgenpost.de