Housing Crisis in Germany Deepens Amid Slowdown in Residential Construction
Germany: Germany's housing sector faces a significant slowdown, with only 230,000 new apartments and houses expected to be built in 2025, down from 260,000 in 2024 and 294,000 in 2023, according to the German Property Federation (ZIA). This remains far below the government's annual target of 400,000 units. The decline is attributed to bureaucratic hurdles, high construction costs, and elevated interest rates.
The ZIA report highlights that limited construction activity, combined with strong housing demand, is worsening the crisis. "The situation of the real estate industry is craving for a political reboot," said ZIA president Iris Schoeberl. Rental prices, especially in major cities, are likely to rise further as homeownership becomes less feasible due to high borrowing costs. With fewer development projects, housing shortages may continue, keeping property prices elevated.
Source: Business Times