Summer vacation moods dimmed in Germany, according to a recent IW/ZIA survey, revealing widespread disappointment.
The German real estate sector is experiencing a subdued period after the summer break, with a dampened mood among its managers, according to a recent survey by the Institute of the German Economy (IW) and the Central Real Estate Committee (ZIA).
The survey results indicate a drop in expectations among real estate managers, with optimism falling by 4.1 points to 24.8 points. This less optimistic outlook is due, in part, to the lack of confidence in the government's housing market reforms.
ZIA President Iris Schöberl has been vocal in her criticism of the federal government's approach to housing market reforms. She prefers structural reforms over piecemeal measures and has criticized the government for not implementing a real boost and structural reforms in the sector.
Michael Voigtländer, a real estate expert at IW, echoes Schöberl's sentiments. He stated in the Friday edition of Handelsblatt that the optimistic sentiment in the industry following the change of government has faded. Voigtländer also noted that disappointment is spreading among many places in the German real estate industry.
The survey of 1,200 real estate companies shows that only five percent of managers believe that the housing market will be eased by the government's reforms. The majority of surveyed companies are dissatisfied with the government's reform efforts, with the housing market being a significant issue for the sector.
At the time of the survey, the German government was a caretaker government following the breakdown of the previous "traffic light" coalition (SPD, Greens, FDP) in November 2024. The Bundestag had not yet approved a new budget for 2025, and a new coalition under Union leadership (CDU/CSU) was expected after the early federal election in February 2025. The government had introduced a draft law aimed at accelerating housing construction and securing residential space during this period.
Despite these efforts, the planned housing construction boost is considered ineffective by many surveyed managers. Schöberl has also criticized the government for not implementing a real boost and structural reforms, highlighting the need for more comprehensive action to address the concerns of the real estate sector.
Read also:
- Planned construction of enclosures within Görlitzer Park faces delays
- Controversy resurfaces following the elimination of diesel filter systems at Neckartor: A renewed conflict over the diesel restriction policy
- Foreign financial aid for German citizens residing abroad persists
- Hulk Hogan's successful transformation of his wrestling persona into a lucrative business entity
