Construction Minister Klara Geywitz speaks of a “brief economic challenge”, but Vonovia halts the construction of 60,000 apartments due to excessive costs. There is now great uncertainty in the German construction and real estate industry. How deep are we already in the crisis? We discuss this in the January issue of G+L and gather the opinions of experts from planning, the construction industry, business and the public sector.
The January issue of G+L focuses on the construction crisis in Germany. Cover image: Amanda Kloska via Unsplash
Not all segments are doing badly
PROJECT, Euroboden, Signa: several real estate companies have had to file for insolvency in recent months. This has attracted a great deal of public attention, and for a surprisingly long time. Numerous media outlets are reporting that Germany is in a construction crisis. The cranes in Berlin and the like are standing still. In fact, however, this is quite nonsense. Not all segments of the construction industry are doing badly.
The crisis in new residential construction
New residential construction is mainly affected by the crisis. The number of building permits fell by a third in 2023. The main reasons for this are high costs, increased interest rates, a lack of land and high state requirements. In September, Federal Chancellor Olaf Scholz welcomed 30 associations and representatives of the federal states and local authorities to the housing summit in Berlin. This was followed by a 14-point plan. We are still a long way from Klara Geywitz’s target of 400,000 new homes per year.
Uncertainty throughout the construction industry
The crisis is therefore concentrated in one area, but uncertainty is growing collectively across the entire construction industry. And not without good reason. Experts from economic research circles told us in the editorial offices of G+L and BAUMEISTER that they have been preaching the necessary measures for residential (new) construction for years. However, politicians have remained obstinately inactive. Why should anything be done now? The Baumeister editorial team also reported that the first construction industry companies were sending their employees on short-time working.
Who needs to take action, where and how?
In this issue of G+L, we want to know to what extent this so-called “construction crisis” or “housing crisis” affects landscape architecture and urban planning, but above all what needs to be done now from a planning perspective. Andrea Gebhard, Stephan Lenzen, Thomas Welter and Tim-Oliver Müller answered our questions and summarized for us who needs to take action now, how and where – but also why no one should go into panic mode.
Dear readers, we hope you have had a good start to the new year and look forward to seeing you in 2024.