Impact of Berlin's Decreasing New Housing Construction on the Real Estate Crisis - Expert Analysis

Impact of Berlin's Decreasing New Housing Construction on the Real Estate Crisis - Expert Analysis

According to a report by www.rbb24.de,

Berlin is recording a decline in housing construction. The goal of 20,000 new apartments per year will not be achieved in the current year 2023, after it was not achieved in the previous year. This has a negative impact on the situation on the real estate market in the capital and is met with criticism from the construction industry.

According to Building Senator Christian Gaebler, only around 16,000 new apartments are expected to be built, compared to 17,310 last year. Next year also promises little improvement in terms of the target of 20,000 new apartments. The construction industry complains about too few orders and is dissatisfied with discussions about the expropriation of property owners.

The Berlin and Brandenburg Construction Association sees politicians as responsible, as incoming orders in residential construction are at a low level. The causes include high material prices, increased loan interest rates and long approval times. The discussion about expropriations is also putting a strain on investments in new housing projects. The Berlin FDP is calling for an ambitious new building offensive, more building space and an acceleration of the approval process.

Building Senator Gaebler points out that the decline in the number of new buildings has not been even greater, due to a certain lag in completed apartments in Berlin. However, the situation remains worrying as the construction industry is feeling the effects of the current interest rate trends and economic situation.

Overall, these developments on the real estate market in Berlin suggest that the city is facing major challenges in dealing with the housing shortage and rising rents. Failure to achieve the construction targets could have long-term effects on the housing market and the real estate industry in Berlin. This requires a comprehensive and targeted policy strategy to improve the situation and stimulate housing construction.