According to her own words, Federal Construction Minister Klara Geywitz expects 265,000 apartments to be completed in Germany next year. The SPD politician was referring to a new forecast from the German Institute for Economic Research, as she told the “Rheinische Post” (Friday).
The federal government has actually set itself the goal of building 400,000 apartments every year in the fight against rising rents. In an unforeseeable recession, it would be impossible to build 100,000 more apartments, said Geywitz. “But I’m glad that we have stable completion figures.” It expects 270,000 new apartments to be built by the end of this year. The housing market will probably brighten “at the end of 2024 and beginning of 2025”.
The real estate industry is currently struggling with increased interest rates, which make financing projects more expensive. In addition, construction and material costs have increased significantly. Many projects are being postponed or canceled, especially in housing construction.
