Berlin's Housing Crisis Deepens as Medium-Sized Apartments Scarce
Berlin's housing market faces significant challenges, with high construction costs and lengthy approval procedures hindering the creation of new homes. The decline in social housing units is exacerbating the shortage, particularly for medium-sized apartments, which are in highest demand.
A recent market assessment by the Investment Bank Berlin (IBB), based on surveys of around 200 experts from various sectors, paints a stark picture. The supply of rental apartments is balanced only in the highest price segment, while medium-sized apartments in lower and middle price segments are scarce. Industry experts predict a further decline in supply, especially in these segments.
GESOBAU, a municipal company, and Deutsche Wohnen, one of the largest landlords, are among the housing companies actively trying to meet the demand for affordable rental apartments in Berlin. GESOBAU invests heavily in affordable housing construction and manages a large portfolio of apartments with social housing eligibility, without brokerage fees. Deutsche Wohnen, with its extensive portfolio, also plays a significant role in providing urgently needed housing.
The rental market in Berlin remains very tense due to a shortage of supply, particularly for medium-sized apartments in lower and middle price segments. While companies like GESOBAU and Deutsche Wohnen are working to address this issue, high construction costs and lengthy approval procedures continue to pose significant obstacles to creating more housing.
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