Olaf Scholz, the Prime Minister who was elected in 2021 with the Socialist Democrat Party (SDP) has promised 400.000 new apartments in order to lower the rents around the country. After the elections, the government only managed to build 295.300 new flats and couldn’t fulfill the promises Scholz pledged. Demands towards new projects have been in decline whilst second-hand estates have increases in value. It's a good time to own a second-hand apartment in Germany!
The Prime Minister had decided to mobilize a total of 14.5 billion Euros, which she called "a record amount" since the elections, for new housing and construction projects until 2026.(feminine)
About 187 targets were set for this, and it was announced that they would be followed under the leadership of Klara Geywitz, who was appointed as the Head of Reconstruction from the same party as the prime minister.
- What does Geywitz aim to do with the new 187 pledges for new housing?
The German Government aimed to lower the prices, protect the environment and strengthen the real estate industry with the 400.00 new housing pledge. If the projects came true, folks with a lower income would have the possibility to become an owner.
And now, Germany faces an important turnaround.
- Why can’t the new buildings be constructed in Germany?
The costs of construction couldn’t be lowered as the government predicted and sp the mass production of new buildings wasn’t able to carry forward.
The increase in tax rates and energy costs, have caused the material prices to rise as well as logistical prices, the lack of skilled labor was no help.
- How will Germany’s new housing projects proceed in 2023-2024?
According to German Real Estate Federation, this year and the upcoming year the numbers are expected to be lower. As the government fell short on their 400.00 housing promise, German Independent Real Estate and Housing Association (BFW) president Dirk Salewski made some statements. He used the word “disaster” for the 2024-25 for construction industry. ‘felaket’ olarak adlandırdı.
As the newer house values began decreasing, second-hand houses’ have started to rise.
- How are the secondhand house prices in Germany?
After the promise of 400,000 new flats each year fell short, the need for housing in Germany increased. Empirica Regio, a trusted research firm in Germany, has identified a "demand gap" of 23,177 homes in Berlin, 13,632 homes in Hamburg and 10,577 homes in Munich. For this reason, rents in three cities where the population and workforce are high have increased considerably compared to previous years.
- Is it advantageous to own a second-hand house in Germany?
Of course, owning a second-hand house in Germany provides a residence permit, as well as providing you with access to existing facilities such as public transport and not waiting for a long construction process. However, before making a financial attempt, we always recommend that you consult with companies that are experts in the field of foreign investment and real estate. InvestGC, is Turkey-based investment and citizenship company, a leading firm in its field. Majority of the big names in this filed globally have their trusts in us for their operations both in Turkey and internationally. We provide you with an open, transparent and timely project with the related agencies and companies that we cooperate with in the sale of second-hand housing in Germany.
- How to buy a second-hand house in Germany?
You need to contact your local real estate agents to find the right second hand home for you. As InvestGC, we evaluate the projects that will be suitable with you, together with the related agencies and companies in Germany, in order to facilitate the process for you. We manage the process by acting in a way that will inform you at every step with our expert lawyers and staff.
Franz-Bernd Große-Wilde, CEO of Spar- und Bauverein Dortmund, one of the oldest housing cooperatives in Germany, said that the result of the promised targets after the government's failure to meet the needs is clear. "Failing to realize projects today risks creating a significant housing 'gap' in two to three years. It will become much more difficult for people to find homes," he said.
Buying a new home in Germany under the stipulated conditions will be a very challenging process. For this reason, now is the right time to own a second-hand house in Germany!
