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More new apartments approved: implementation falters

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Federal Statistical Office
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More new apartments approved: implementation falters

No new houses can be built without a permit. But even with official permission, it can still be a long time before owners or renters can move out.

Approvals alone are not enough: Authorities approved more new apartments last year than in more than 20 years.

However, according to the construction industry, an unclear financing structure, high prices and the accumulation of materials prevent the implementation of the projects.

380,914 apartments approved in 2021 meant an increase of 3.3 percent over the previous year and the highest value since 1999, according to the Federal Statistics Office on Thursday. However, how many units were actually completed, the authority does not want to report until the summer.

According to experts, it is likely that the so-called housing portfolio approved but not completed for various reasons has continued to grow. At the end of 2020, the traffic jam was around 780,000 units. Although nearly 369,000 new apartments were approved that year, only a good 306,000 were completed. But that was the highest value since 2001.

According to the information, the increase in visas in 2021 affected almost all types of new construction. There was an increase of 0.9 percent in single-family homes, 25.1 percent more in two-family homes and 2.2 percent more in apartment buildings. Only for bedrooms, fewer permits were issued than in the same period of the previous year (down 26.6 percent).

The goal: 400,000 new homes per year

The main association of the German construction industry critically assessed the development. Since the middle of the year, the number of permits has decreased and there is also a lack of multi-family housing in metropolitan areas to quickly remedy the housing deficit. The reasons given by the association in Berlin were the elimination of child support and the increasing shortage of materials and the resulting price increases in construction. It needs a clear financing structure and more series and modular housing.

The stoplight coalition has set a goal of 400,000 new apartments per year. One in four must be social housing and another 60,000 units must also be affordable for low- and middle-income people, according to January’s “Social Housing” alliance. He presented a study according to which annual financing of at least six billion euros was necessary.

The construction industry increased its sales by just one percent last year, according to the Federal Statistical Office. The number of employees in the industry increased 1.4 percent from the previous year. The German Association of the Construction Industry recently spoke of an increase from 19,000 to a good 911,000 employees. Thanks to the real estate boom and especially the strong demand for apartments, the construction industry has defied the Corona crisis.

© dpa-infocom, dpa:220310-99-461207/2

(dpa)


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