Zins reduction as an opportunity: Federal government should promote construction wave

Zins reduction as an opportunity: Federal government should promote construction wave

The housing shortage in Germany: A call to the rapid ability to act

Berlin, September 12, 2024 - In a critical moment for the German housing market, experts in the real estate industry are calling for a rapid reaction from the federal government to the latest economic developments. The decisions of the European Central Bank (ECB), in the form of interest reductions, should be viewed as an opportunity to promote urgently needed investments in housing construction. Iris Schöberl, President of the Central Real Estate Committee (ZIA), emphasized that the increasing construction costs and the high interest burden are severely limited investors in their ability to act.

"Time is pushing and we have to draw the teachings from the past," explains Schöberl. The ZIA emphasizes that in 2015 urgent urgent measures for the construction of refugee accommodation were decided. This flexibility must now also be applied to general housing without losing progress in the standards. The lack of housing is identified as the most important social question in 2024 and requires courageous decisions on the part of politics and a review of excessive regulations that hinder the construction projects.

A central concern of the ZIA is that the plans to facilitate the building law are quickly converted into binding decisions. The urgency is evident, because the number of new apartments in Germany required is estimated at around 600,000 - the risk that this gap will continue to increase to 830,000 by 2027 is real. In order to cope with this challenge, the federal states must also make their contribution and actively participate in solutions.

The ZIA is particularly critical of the current regulations with regard to sustainable construction requirements and reporting requirements. These often represent unnecessary obstacles to potential investors and should be subjected to a precise review. The need to rethink in housing policy is clear, because a sustainable housing market is not only essential for social stability, but also for the overall economic development of Germany.

Finally, it can be said that the federal government and the positions involved will have to become active as soon as possible in order to revitalize housing in Germany and finally provide suitable living space for all sections of the population. The call to change is loud and clear: "A wave of construction must now be started in order to meet the needs of our population," says Schöberl.