In Berlin, almost no apartments are being built

Berlin - Germany is among the countries in Europe with a very low number of newly constructed apartments. The increase in new apartments in Berlin is virtually zero, while the most construction is taking place in Bavaria. This is claimed in a current study by the Berlin Institute for Housing Economics (IFS), which states that approximately three apartments are being newly built per 1000 inhabitants in Germany. This is roughly the same as in the Czech Republic.
    In 2006, an average of three apartments were completed in Germany per 1000 inhabitants, while for example, in Ireland it was 21.3 and in Spain a full 16 new apartments per 1000 inhabitants. In the Czech Republic, according to statistics, 30,187 apartments were completed last year, which translates to almost three apartments per 1000 inhabitants, about the same number as in Germany.
    The unfavorable trend in the German market for new apartments is expected to continue. "For the years 2007 and 2008, it is necessary to expect a significant decline in the number of new constructions in Germany," quoted IFS director Stefan Jokl by the newspaper Die Welt.
    Jokl attributed this trend, among other things, to the cancellation of state subsidies for home ownership, which the German state provided during the period of 1995-2005, before the current grand coalition government abolished them.
    Last year, in the German capital, on average, not even one new apartment was built per 1000 inhabitants; according to the IFS, it was 0.9 apartments. Additionally, in approximately 100,000 apartments in the metropolis, no one lives, estimates housing policy expert Thomas Brand from the Berlin Senate. Thus, in Berlin, almost everyone can find an apartment, as there are apartments available in almost all sizes and price categories.
    Berlin is known for its relatively low rents. For an apartment of 65 square meters, the rent - excluding costs and heating - is around 350 euros, while in the most expensive Munich, it exceeds 600 euros, which is 62 percent above the national average.
    The intensity of new construction varies significantly among the federal states. For instance, Brandenburg, which surrounds the capital, paradoxically ranks second in the number of new properties created. Here, 4.2 apartments were built per 1000 inhabitants. Bavaria performed just slightly better by two tenths."In the federal states where the construction of one or two-family homes predominates, apartment construction has not declined as significantly as in regions where the construction of rental apartments is at the forefront," explains Jokl.
    In Berlin, new apartments are constructed only minimally in its eastern part, but in the past five years, panel buildings with 4000 apartments have been demolished in the eastern borough of Marzahn-Hellersdorf.
    However, the prospects for revitalizing the German housing market are relatively favorable according to experts. The German Federation of Homeowners and Landowners predicts that within five years, the demand for new apartments will again exceed their supply.
    For example, the population of Berlin, currently around 3.4 million, is still slightly rising, and simultaneously, according to scientific models, the share of people aged 65 and older is significantly increasing. Today, they make up 16.6 percent of the metropolitan population, but by 2040 this is expected to be nearly one-third. Thus, according to experts, smaller apartments, which are often sought by seniors, will soon become a scarce commodity.