Construction madness in Germany: who is going to manage it?

80 seconds! Yes, you heard right. A new apartment would have to be completed every 80 seconds to achieve the German government's ambitious target. According to the coalition agreement, 400,000 apartments are to be built every year. A mammoth task that seems almost impossible!

But that is not the only hurdle that Germany has to overcome. According to the Climate Act, 19 million residential buildings must be refurbished to be climate-neutral by 2045! How is this supposed to work when the skilled trades sector is already facing a gigantic problem: 250,000 employees are missing from the skilled trades sector, according to the Central Association of Skilled Crafts.

And meanwhile, construction costs are exploding! Since the year 2000, they have risen by a whopping **80%**, reports the housing industry. Added to this is the uncertainty of inflation, which is making it increasingly difficult to finance building projects. As if that were not enough, the renowned Ifo Institute reports that 56.6% of construction companies are suffering from a shortage of materials. Cement, steel and co. are becoming a scarce commodity!

In the midst of this crisis, one figure in particular is causing a lot of head-scratching: 13.4% of building construction companies are reporting new construction cancellations. Investors are jumping ship and pulling out. New construction is coming to a standstill, building sites are lying idle.

Can Germany create the construction giant? New homes for families, renovations for the climate and construction sites without tradesmen. Who is going to manage this? Who can get to grips with it? A symbolic image of madness: high-rise buildings under construction, urban living in limbo and a trade on the verge of collapse. Will our building sites soon be nothing but ruins of hope?

Is our future dream of climate-neutral houses and urban living spaces really on shaky ground? The fact is: the challenge is huge. The measures - easy to say, but hard to do. Time for solutions. Time for action. Now or never!

Want more information? Then download my latest real estate guide HERE and NOW - free of charge for you! Have fun reading.

Kind Regards

Matthias Holzmann