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4 Top Factors Influencing The Present Situation of the German Housing Crisis.

German cities struggle to curb housing shortage | Germany| News and  in-depth reporting from Berlin and beyond | DW | 22.07.2019
With rent rates soaring, Germany’s housing business has recently posed a challenging constraint to its citizens.
Every day, housing options in Germany become increasingly scarce.
Finding cheap accommodation has become a major challenge for individuals in Germany, particularly in large cities such as Berlin.
A real estate agent appears to be the most effective approach to discover a home with some degree of convenience.
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With the German elections just around the corner, the subject of public housing and rent increases is a key campaign topic.
Projections of how the German real estate housing market will look in the future are unpredictable, given the upcoming elections and current litigation.
With this in mind, let us take a look at some of the elements that have played a significant role in developing the overall structure of the German real estate housing market.

Prospective buyers frequently wonder what variables impact property prices in Germany as well as why they appear to have been steadily growing in recent years.
A property’s value is impacted by a number of factors.
Which would include the year of construction, characteristics, structural condition, geographic location, and adjacent infrastructure, among others.
Without a doubt, supply and demand have a significant role in determining property values in Germany.
For decades, there’s been a continuous demand backlog in Germany, particularly in economically powerful megacities.
As a result, the number of available homes cannot meet the real demand.
Despite the present construction boom, this is leading property values in Germany to soar, especially in public places.
Another cause for the continuous rise in property prices is a lack of infrastructural development.
Housing supply is falling short of meeting demand.

  • Migration Crisis.

The migratory issue has exacerbated the housing crisis situation.
The housing status of acknowledged refugees in Germany is an interesting subject of investigation since it differs from that of other disadvantaged demographic groups.
When asylum seekers arrive, they are housed in first-come, first-served facilities; their townhouse and kind of lodging are governed by German law.
As per the UN High Commissioner for Refugees, Germany has the fifth-highest number of refugees, at 1.06 million.
An examination of the history reveals that the surges of immigration are premised on an already large overhang of demand.
This is in stark contrast to any other country, including the majority of industrialized Western countries.

  • Increased demand for commercial and residential real estate

Germany’s economics and demography trends are also increasing demand for high-quality real estate.
Given the rising rapid urbanization and population growth in conurbations, where residential space is restricted.
Because of low unemployment and historic employment levels, office assets are in high demand.

  • Hope for the price decrease.

Although property prices continue to rise, price inflation rates are likely to have peaked in early 2015 and have been steadily declining since then.
So, while home prices have the potential to rise further, it is probable that they will do so at a slower rate, and buyers should be cautious at this phase of the life cycle.
Germany’s economic conditions are favorable.
However, the situation is “changing quickly,” and the country’s responsibilities inside the Eurozone may cause changes in the nation’s economy.
ZIA German Property Federation is a professional organization established in Berlin that serves as the regulation and financial interest organization for Germany’s real estate sector.
Prices are expected to level down soon, according to the forecast.


The current status of Germany’s real estate property market is simple to explain: rising demand meets a scarce and diminishing supply.
With the German elections approaching, more changes are on the way.
As public housing has become the key topic in all elections, the real estate business is to undergo certain adjustments
Due to the continual increase in rent rates, more Germans are unable to satisfy their obligations, and fewer apartments are being contracted.
So far, the German government has not done all in its ability to attempt to fix the problem.
In the event of a worldwide economic catastrophe, analysts think that Germany, due to its housing problems, is likely to withstand the storm better than most other countries.
Despite all this, Germany’s prosperous economy, as well as its shown capacity to adapt in a constantly changing world, make the German home market appealing at this moment.