Why builders in Germany despair – and how that can be changed

• The costs of building a house are increasing immeasurably, and many property developers are giving up their projects. Instead of the promised 400,000 new apartments, not even 300,000 are expected to be built in Germany in 2023.
• In addition to increased interest rates, a shortage of skilled workers and material bottlenecks, the industry suffers from too much bureaucracy. But there are ways out.
• Read here what traps lurk for private builders in new construction and renovation and how they can be avoided.

The property has been bought, the required architectural competition process has been completed, the plans have been drawn up and the building permit has been granted. But after years of planning, it’s over. At least for part of the “Wildrose Terraces” construction project in Dresden.

169 apartments were to be built on the terraced property on Saalhausener Strasse. Now there are only 65. “We have put the rest of the project on hold for the time being,” reports the Managing Director of Baywobau Dresden, Berndt Dietze. The rising building and building material prices and the rise in interest rates would have left him no choice.