Disgraceful housing offensive
The federal government will create a “ridiculous” 68 new buildings in 2023
March 16, 2024, 9:59 a.m
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Germany is missing hundreds of thousands of apartments. Years ago, the then federal government announced that it wanted to make a contribution to alleviating the housing shortage. But the result of the promised offensive to build thousands of accommodations for federal employees is sobering.
The federal government is planning to build thousands of new apartments, but implementation is stalling. Last year, the responsible Federal Real Estate Agency (BIMA) completed 68 new buildings. This emerges from the Finance Ministry’s response to a request from Left-wing Bundestag member Caren Lay. Since 2020, BIMA has started building 2,753 apartments as part of its new construction program – but only 200 have been completed.
This is about housing for federal employees, such as federal police officers. These apartments should also ensure that the general housing market is relieved. In 2018, the then federal government announced a housing construction offensive and announced the construction of 6,000 to 8,000 new apartments. BIMA belongs to the federal government and is one of the largest property owners in Germany. Lay criticized that the number of new buildings was ridiculously low in view of the worsening construction and housing crisis.
“In view of the rapidly rising rents, the extreme housing shortage in many large cities and the exploding construction costs, a significantly stronger commitment can be expected from the federal government,” emphasized Lay. In addition, BIMA apartments would continue to be sold to private investors. “The sell-off must end once and for all,” demanded Lay.
According to the Council of Real Estate Experts, there is a shortage of 600,000 apartments in Germany this year. The federal government’s goal of building 400,000 apartments annually is becoming a long way off: According to the IFO Institute, the number of new apartments built annually could decline by 35 percent by 2026 compared to last year. One reason for the lull in construction is the sharp rise in construction and financing costs.