400000 castles in the air, commentary on the real estate market by Karin Böhmert
Frankfurt (ots) – The promise of Federal Minister of Economics Robert Habeck
(Greens) to create 400,000 new apartments per year nationwide is a
hot topic. Experts rub their eyes as to how this is suddenly supposed to succeed.
According to the report of the Central Real Estate Committee (ZIA) in the past
Year 316000 homes have been built, which is only a 3 percent increase in
compared to the previous year. Because of the long construction times, the goal is annually
400,000 new apartments in this legislative period can hardly be achieved, but only
after 2025, says the co-author of the report, Harald Simons.
The task that the government has set itself with the promise is
immense in view of the many hurdles that have now been removed surprisingly quickly
are to be: Planning and approval procedures are to be accelerated
Administration digitized and of course the bureaucracy reduced. That has
you’ve heard it all before. Even if that succeed and to speed up
should lead to construction projects, new requirements must be met – for example to achieve
the climate protection goals energy-efficient but expensive heating systems,
extensive insulation or solar obligation on roofs. Finally this is
Regulation fever, keyword rent cap, nationwide not cooled down.
So does Habeck have castles in the air built? To “castles” it can be a view
bargain on prices. While rents for new contracts in 2021 increased by 3.7
percent rose, the already high prices for climbed
condominiums by 14.3 percent. This is quite frightening, they explain
Experts who warn against buying, since no return can be achieved. The effect
this price spiral is already visible: it’s only getting smaller and smaller
Apartments built or for sizes over 100 sqm there is a surcharge on the
rent or the price. 15 to 20 years ago, 60 to 80 percent of
Newly built apartments with four or more rooms. Today there are only 20 bis
40 percent and mostly in the very high-price segment, reports Simons.
For families, it no longer seems viable, on what used to be 60 or 80 square meters
to live in single flats and they move to the country where prices go up,
while the cities waste away.
Can the bursting of a real estate bubble end the price spiral and housing
make affordable? The experts don’t want to talk about a bubble, but they do
Interest rate developments could initiate a correction. Or Habeck leaves thousands
build “affordable” little “shoeboxes” to keep his promise.
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