German housing shortage greater than forecast
Die Welt and the Frankfurter Algemeine Zeitung (FAZ) have reported thatthe fact Germany’s housing shortage is greater than assumed. If demand is to be met, around 500,000 new apartments need to be built across Germany each year until 2020.
This is the result of a study carried out by the University of Freiburg on behalf of the IVD organisation. So far, the federal government has based its plans on a requirement of 350,000 new apartments per year. And yet this is nowhere near enough, said Michael Schick from the IVD. With its forecast, the IVD wants to show just how dramatic the situation really is and highlight the considerable need for increased action. Construction is the only truly effective way to counter the escalating housing shortage in Germany.
“Last year’s figures show that only 228,000 new apartments were approved in the first three quarters of the year. The figures for the year as a whole will probably not exceed 300,000. That’s a deficit of around 200,000 apartments,” criticised the IVD’s President.
The study reveals that the influx of refugees is having a greater impact on population figures than was originally thought. The study is based on assumptions made by the Federal Office of Statistics that long-term net migration will add around 200,000 to Germany’s population each year. This will peak in 2037, by which time the population will have grown by 2 million. From 2043, the population will begin to decline once more.
Demand for new apartments in Germany’s western cities has been calculated at 422,000 per year, with almost 72,000 new apartments needed each year in the country’s eastern cities. Schick has suggested that the distribution of refugees across Germany needs to be reorganised. There are currently vacancies in a number of regions and these could readily be exploited to provide housing for refugees.
“We don’t just need to reactivate the social housing sector, we need to address the entire housing market if we are to stand any chance of satisfying the high levels of demand created by the influx of refugees,” demanded Schick. (Source: German Real Estate News email@example.com