Empira Research: Residential Construction in Germany's Metropolitan Areas
Empira publishes its latest study on Residential Construction in Germany's Metropolitan Areas
Empira’s latest research study presents an analysis of housing supply in the eight largest metropolises in Germany and contextualizes this within demographic and economic developments.
Some key highlights:
- Rising interest rates, expensive building materials, and scarce building land are making it increasingly difficult for many families to afford the traditionally desired home ownership. The immediate alternative is renting.
- The situation in the rental market is becoming more severe as numerous projects are being postponed or canceled due to increased construction costs and interest rates, along with a lack of available plots and building permits.
- The level of new construction is significantly too low to noticeably alleviate the strain on the rental market. According to estimates, for example by the Pestel Institute, there is a shortfall of 600,000 homes in Germany.
The study goes into detail about how investors and project developers can anticipate market developments early on by understanding the relevant environmental parameters and how they can utilize these for their strategies.