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Fewer construction projects: trend reversal on Sylt
"The real estate market is calming down on Sylt - falling construction projects and rising prices. Find out why construction activity is decreasing and what effects can be expected. #real estate market #Sylt #building permits"
Fewer construction projects: trend reversal on Sylt
On the North Sea island of Sylt, the number of building permits issued continues to decrease compared to the previous year. In 2023, the responsible district building authority in Husum approved the construction of 194 apartments and houses on Sylt, which corresponds to a decrease of 17 percent compared to the previous year. Compared to 2021, the number even fell by around 21 percent. This decline is seen as a positive development as it helps to calm the property market on the holiday island. However, real estate agent Peter Peters emphasizes the need for new construction, especially in dilapidated buildings.
Construction activities on Sylt are also affected by other factors such as high construction costs, rising interest rates for real estate loans and increased energy standards. This is causing many construction projects on the island and mainland to be delayed or canceled, particularly in residential construction. Peter Peters believes that building regulations in the areas of energy efficiency and sound insulation are excessive and lead to high costs. He calls for standards to be aligned in order to create affordable housing on Sylt.
Another aspect that leads to fewer new buildings is the renovation of existing buildings compared to new construction. The strict requirements for living quality and extras make some renovation projects more expensive than a new building. On Sylt, where real estate prices are already high and living space is scarce, this decline could lead to further increases in prices. However, the municipality of Sylt is planning to create additional, affordable permanent housing. Municipal Property Management (KLM) manages over 1,200 permanent apartments, around two thirds of which are publicly funded.
The trend of decline in building permits on Sylt is also reflected on the mainland. In January 2024, the Federal Statistical Office recorded a 23.5 percent decrease in building permits issued compared to the previous year. This shows that housing construction in Germany is declining overall. Housing associations have called on politicians to rethink standards in order to stimulate housing construction. According to the construction industry, simplifying housing standards could have a positive effect.