Although the number of building permits issued in the first half of 2026 increased by 15.1% (to 126.3 thousand), the number of actually completed facilities continues to fall. According to forecasts of the Munich-based Ifo Institute, only 185 thousand houses will be built this year, which is the lowest figure in the last 15 years, while the country's annual demand is estimated at at least 300 thousand units.
In addition to the shortage of new housing, rising prices pose an acute problem. In Berlin, where the majority of the population rents, the average rent has increased by more than 110% since 2010, and new apartments are available for rent starting at 25 euros per square meter.
Representatives of the construction industry are criticizing the federal government's plans to reduce housing subsidies by 1.4 billion euros, leaving only 2 billion euros in the budget for 2027. They insist on reliable and long-term financial support, as well as the early introduction of simplified building standards ("Type E"). to reduce bureaucratic barriers.
Source: Anadolu
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