SHARE
COPY LINK

APARTMENT

Germany hits 10-year-high in home-building

The German housing market is booming, particularly for brand new flats.

Germany hits 10-year-high in home-building
Photo: DPA.

High demand and lower mortgage interest rates have been a huge boon to the construction of new housing in Germany since the beginning of the year, the Federal Statistics Office reported on Friday.

In January, the number of housing construction permits granted rose by 34.5 percent, or roughly 6,700 more dwellings, over the same period last year. In total, 26,300 apartments were approved.

Such a high number of permits during the month of January has not been seen for a decade, since January of 2006.

This January, 21,600 new apartments were built, which was 31.3 percent more than last year.

Meanwhile, the number of building renovations made to existing buildings resulted in 4,500 new flats – the highest number in 20 years.

The construction of single family houses also saw a stark increase of 35.3 percent over last year. Multiple-family homes also rose by 28 percent, as well as two-family homes increasing by about 24 percent.

A member of the board at the German Central Bank (Bundesbank) warned though of an overheating of the housing market in big cities.

“We can't yet talk about it being a real estate bubble, however we do see in some German cities that there is definitely price inflation in housing,” Andreas Dombret of the Bundesbank told Focus magazine.

“Institutions should be very careful considering the market, and thoroughly weigh their decisions about real estate.”

SEE ALSO: German cities struggle with housing shortage

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

HOUSING

‘Housing is a human right’: Rent activists step up pressure ahead of German elections

Housing campaigners from across Germany have banded together ahead of the September elections to demand an immediate rent freeze and affordable housing for all.

'Housing is a human right': Rent activists step up pressure ahead of German elections
People protesting for Deutsche Wohnen & Co. enteignen at a demo in Berlin on August 21st. Photo: picture alliance/dpa | Christoph Soede

In a demonstration taking place in the German capital on September 11th, 2021, numerous campaign groups will take to the streets, among them the Berlin-based Expropriate Deutsche Wohnen & Co. campaign, the national Rent Freeze campaign and the Mannheim-based Action Alliance Against Desperation and Rent Madness. 

They are demanding a national rent freeze for the next six years to halt rising rents, along with a focus on building more affordable homes and the transfer of property from private landlords into state hands.

“With this rents demonstration, we’re protesting against the massive, persistent pressure that renters are facing in the whole of Germany,” campaigners said in a statement announcing the upcoming protest.

“Whether it’s Frankfurt, Dresden, Munich, Leipzig, Berlin, Hamburg or Cologne, rents are incessantly rising or have already reached unreasonable levels – und not just in the big cities.

“In many places, the availability of affordable living space has sunk dramatically for those entering a new housing contract. Homelessness is rising further and with it, the number of people who live on the streets without any shelter at all.” 

Sharp rise in rents

Of all the cities in Germany, Berlin has by far the fastest rising rents: a recent study by housing portal Immowelt found that asking rents in the capital have soared by more than 40 percent over the past five years alone.

READ ALSO: COMPARE: The cities in Germany with the fastest-rising rents

However, the same study also found that middle-sized German cities like Heidelberg and Kaiserslautern were experiencing significant rent hikes over the same period, while the country’s priciest cities like Munich and Stuttgart continued to see rents go up – though not quite as steeply as in previous years.


Not just Berlin: Medium-sized cities such as Heidelberg have seen steep rises in rents over the past half a decade. Photo: picture alliance/dpa | Uwe Anspach

As Germany prepares to head to the polls on September 26th in both the federal and a number of state elections, the campaign is aiming to step up pressure on the next government to embark on a “radical change of course” in the country’s housing policy. 

READ ALSO: Election 2021: How do Germany’s political parties want to tackle rising rents?

In Berlin, people with German citizenship will also be given a vote in a referendum on whether the state government should buy out thousands of flats owned by for-profit landlords with 3,000 or more properties – including Vonovia and Deutsche Wohnen – in order to better control rents and living standards.

“On September 26th, Berliners have a unique, historical chance to stand up against the selling off of our cities,” Rouzbeh Tehari, spokesman for the Expropriate Deutsche Wohnen & Co. campaign, told The Local.

“The referendum to nationalise large property firms offers the opportunity to remove hundreds of thousands of apartments from capitalist speculation and manage them as social housing.”

READ ALSO: Berlin to vote on radical bid to combat housing crisis

Even if the referendum passes, however, the campaign expects to face a fierce battle with the newly elected Berlin Senate to see the policy put into law. 

“We won’t stop after the vote,” Tehari explained. “We know we’re facing strong opposition and it will be difficult to get it implemented.” 


A ‘yes’ poster for the referendum being put up in Berlin. Photo: picture alliance/dpa | Christophe Gateau

Either way, the success of the campaign – which managed to collect well over the 170,000 petition signatures needed to call a referendum – will have sent a strong message to the venture capitalists that speculating on Berlin housing is a “high risk” strategy, he said.  

A national rent cap?

The national Rent Freeze campaign, one of the key activist groups involved in Saturday’s demo, is calling for a new six-year rental cap – but says it must be done on a national level.

Earlier this year, attempts to impose a six-year rent freeze in Munich and Berlin were both rejected by Germany’s Constitutional Court on the basis that such as move couldn’t be done on a state or regional level.

In the case of Berlin, the rent cap had been in place since 2018, but was removed after the court found the law to be unconstitutional.

A tweet from the ‘Prevent Forced Evictions’ campaign ahead of the demo on Saturday reads: “According to a new study, a national rent cap is possible. The only thing missing is the political will.” 

At the time, renters were dealt a double blow as the court ruled that landlords also had the right to reclaim back-dated rent for the entire duration of the cap – leading some tenants to be presented with bills amounting to thousands of euros. 

READ ALSO: 

But the national Rent Freeze campaign, which started in Bavaria, has now amassed support from around 140 other organisations and activist groups, and is gaining momentum ahead of the elections.

“Many tenants are desperate,” said Matthias Weinzierl of the Rent Freeze campaign. “They’re legitimately afraid of losing their homes because rents continue to rise and Covid-19 hasn’t changed a thing. 

“That’s why we’re calling for a national six-year rent freeze now, which must be brought in directly after the new government has been elected. Such a rent freeze would be an acute help for tenants – and it’s also urgently needed.” 

‘Existential threat’

The date of the demo is the national Day of the Homeless, and was selected to highlight what campaigners see as the real threat of the housing crisis.

“In many places, high rents are becoming a genuine poverty risk and loss of housing is becoming an existential threat,” said Ulrich Schneider, CEO of the Parity Welfare Association, which is also supporting the demo.


People sleeping rough in Berlin in February 2021. Campaigners believe the housing crisis and homelessness are closely linked. Photo: picture alliance/dpa | Kay Nietfeld

“It’s completely unreasonable to force single parents, people with disabilities or those in need of care, for example, to give up their homes and lose their entire social environment.” 

The protest on Saturday has also received support from the National Working Group for Help for the Homeless (BAGWH), who have linked unaffordable rents to a rise in the number of employed people losing their homes. 

In one recent study, BAGWH found that 15 percent of people classified as ‘homeless’ are currently employed – suggesting that rents in Germany are now outstripping wages, especially for lower earners.

Commenting on the findings, Werena Rosenke, CEO of BAGWH, said that the figures were “proof of the precarious living conditions in which many people find themselves in this country and the trends that are emerging in our society”. 

Any new government elected after September 26th must face this issue head on, she added. 

SHOW COMMENTS