Real estate - Construction minister expects 265,000 new apartments in 2024
Federal Building Minister Klara Geywitz says that she expects 265,000 apartments to be completed in Germany in the coming year. The SPD politician was referring to a new forecast by the German Institute for Economic Research, as she told the "Rheinische Post" (Friday).
The German government has actually set itself the target of building 400,000 apartments per year in the fight against rising rents. In an unforeseeable recession, however, it would be impossible to build 100,000 more apartments, said Geywitz. "However, I am pleased that we have stable completion figures." She therefore expects 270,000 new apartments to be built by the end of this year. The housing market will probably brighten up "at the end of 2024, beginning of 2025".
The real estate sector is currently struggling with higher interest rates, which are making the financing of projects more expensive. In addition, construction and material costs have risen sharply. As a result, many projects are being postponed or canceled, particularly in residential construction.
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Source: www.stern.de
