Gröner Group: Why no longer builds the prominent client in Berlin?

Gröner Group: Why no longer builds the prominent client in Berlin?

Christoph Gröner, one of the leading builders in Germany, has its business in Berlin, but has not been building anything in the capital for two years. The entrepreneur had given the Berlin CDU generous donations in 2020, although he described himself as a convinced social democrat. Gröner commented on the challenges of ecological building and the current trends in the housing industry.

The real estate entrepreneur emphasized that the rising property prices are largely responsible for the priceless housing costs. In Berlin, prices have increased significantly in the past 15 years. This has caused the rents in the new building to have increased considerably, the property component accounts for a large part of the costs. Gröner emphasized the problem that property speculators take advantage of the scarcity and that the construction costs for developers are disproportionately high.

With regard to Berlin's purchasing power and real estate market, Gröner explained that the property prices have exploded, which meant that his company has not made any new investments in Berlin since 2021. The low purchasing power of Berliners in relation to other cities in Germany makes the economic profitability of construction projects difficult. Gröner confirmed the importance of a healthy mix of social housing and freely financed living space in order to create a balanced living situation and to avoid ideological restrictions.

The entrepreneur also spoke about how politics hindered housing by providing the interests of ideologies about economic feasibility. Gröner advocated a quick building law process to quickly create new living space and use the existing resources more efficiently. He proposed to open up motorway areas for housing and emphasized the importance of a master plan that provides for effective cooperation between political parties for residential construction.