The number of new homes built annually in Germany could fall by 35% by 2026 compared to last year, as experts warn of a massive housing shortage in the coming years.
Germany is in a poor position compared to other European countries, according to a forecast published in Munich on Tuesday by the Euroconstruct research network.
According to the forecast, only 175,000 residential units are expected to be completed in Germany in 2026 - 95,000 fewer than in 2023, according to the calculations.
Only in Sweden is the number of completed flats in the 19 European countries analysed predicted to fall more sharply than in Germany.
"New housing construction in Germany is often no longer possible, primarily due to the sharp rise in construction and financing costs. Politicians have not yet decisively improved the framework conditions," said construction expert of the Munich-based Ifo institute, Ludwig Dorffmeister.
Without tax cuts and targeted subsidies, experts believe that there will be a shortage of around 830,000 flats in Germany in 2027. The German Property Federation (ZIA) warned of this at the presentation of its spring report on Tuesday.
"Building is virtually impossible today," said the head of ZIA, Andreas Mattner. "Anyone who builds today will go bankrupt."
New housing developers would only break even with an average rent of €21 ($22.7) per square metre, he said. The property experts urgently called for a reduction in state levies on housing.