Real estate tycoon Christoph Gröner: Building in Berlin no longer profitable

Real estate tycoon Christoph Gröner: Building in Berlin no longer profitable

Christoph Gröner, a prominent client in Germany, has his business seat in Berlin, but has been refraining from building projects in the capital for two years. At first he generously supported the Berlin CDU before positioning himself as a convinced social democrat. At a Future Forum of his Gröner Group in Berlin, Gröner explained the problem of increasing construction costs in the field of ecological building, which make it difficult to create affordable apartments.

Berlin has passed an interesting development in recent years, in which the property prices climbed dramatically. When Gröner started building projects in the city in 2010, prices were significantly lower, which could result in affordable living space. Nowadays, the high property costs represent a large part of the rental prices, while building itself is comparatively less.

When asked whether the Berliners are too poor, Gröner explains that purchasing power in the capital is below average compared to other German cities. This fact complicates the profitability of construction projects, which is why his company has not started any new projects in Berlin in recent years. Gröner emphasizes the need for an appropriate purchasing power to cover the high property costs.

With a view to solutions to the lack of housing in Berlin, Gröner proposes more efficient use of existing resources. It pleads for increased multi -storey and proposes to cover the highway as an option to create living space. Despite the potential for more apartments, there is a lack of willingness to overcome ideological barriers and to work together on a sustainable solution for the lack of housing.