German minister sees housing situation improving at end of 2024

Germany's Housing Minister Klara Geywitz says that she expects 265,000 flats to be completed nationwide in the coming year, as parts of the country face a housing shortage.

Speaking to the Rheinische Post newspaper, the politician from Chancellor Olaf Scholz's Social Democrats said the figures were from a new forecast by the German Institute for Economic Research.

The German government has set the target of building 400,000 flats a year in the fight against rising rents.

Given the current economic recession that could not have been foreseen, however, it would be impossible to build 100,000 more flats, said Geywitz.

The housing market will probably brighten up "at the end of 2024, beginning of 2025," she said.

The property sector is currently struggling with higher interest rates, which are making the financing of projects more expensive.

In addition, construction and material costs have risen sharply. As a result, many projects are being postponed or cancelled, particularly in residential construction.