Financial experts warn of a housing shortage in Düsseldorf and call for flexible handling of the housing action plan

Financial experts warn of a housing shortage in Düsseldorf and call for flexible handling of the housing action plan

According to a report by rp-online.de, real estate agents in Düsseldorf are sounding the alarm about the increasing lack of living space and sharply rising rents. The number of approvals for new apartments is expected to continue to decline, which will further aggravate the situation. The situation becomes problematic, particularly given the expected population growth in Düsseldorf, which is expected to add more than 16,000 residents in the next five years.

The brokers' most radical demand is directed at the city of Düsseldorf: They are proposing a temporary suspension of the housing action plan, which stipulates that at least 50 percent of the apartments in large new building projects must be publicly subsidized. Due to massive increases in interest rates and ever-increasing construction costs, real estate agents are having difficulty financing the subsidized apartments through the rest of the project.

In their action paper, Colliers' experts make a number of other suggestions for boosting housing construction, including streamlining building regulations and measures to make property more attractive as a retirement investment.

The effects of these developments could lead to a further shortage of housing supply and cause rents to rise further. The city of Düsseldorf might have to be more flexible with the regulations on subsidized housing in order to ease the situation. Politicians, on the other hand, see the situation differently, but they are also concerned about the current approval figures and emphasize the importance of a social housing mix.

Overall, this means that the real estate market in Düsseldorf is facing major challenges that could require major restructuring to alleviate the housing shortage and stabilize rental prices.