Real estate industry warns of dramatic slump in residential construction

Berlin In view of the high cost of materials and rising interest costs, the construction and real estate industry is warning of a collapse in German residential construction. “All signs indicate that there will be a dramatic slump in 2023,” says an appeal published on Friday by the 17 leading associations and chambers of the construction, planning and real estate industries.

The goal of the traffic light coalition to build 400,000 apartments a year “threatening to become wishful thinking”. In 2021 it was only just under 294,000, and it should be even less in the year that is coming to an end. “The federal government’s measures to counteract this have so far been inadequate, especially since the need will continue to grow in the coming months given the millions of people who are being forced to flee the war in Ukraine,” the associations warn.