The crisis facing project developers is reaching cities and municipalities. The result: Numerous planned projects have to be stopped, and formerly lively construction sites lie fallow. In the long term, the construction crisis threatens to disrupt Germany's self-imposed goals. The federal government has so far expected to build 400,000 apartments. But there is a big gap: only 293,000 apartments were built in 2022 and only 200,000 apartments are expected to be built this year. Experts don't see any improvement in the coming years either - especially if the project developers' crisis continues.
Commentary by Nikolai von Brandenstein
The crisis in the real estate industry has become a crisis for project developers in the residential segment. Not only are fewer apartments being built than desired, numerous projects are also being stopped. Nevertheless, there are reasons to remain optimistic. The order books are emptying so that specialists are available to the market again. Construction prices are leveling off, and prices for purchasing a condominium for personal use or as a crisis-proof investment are increasingly in demand again. And: The demand for apartments will definitely remain unbroken in the coming years. Anyone who invests in a property now could later realize that they bought it at the right time.
Managing Director
d.i.i. Homes