A palpable shift in sentiment has emerged within Germany’s real estate sector following the summer break, according to a new survey. Conducted jointly by the Institute for Economic Research (IW) and the German Real Estate Committee (ZIA), the findings reveal a significant decline in optimism among real estate managers.
The survey, encompassing responses from 1,200 real estate firms, indicates a drop in expectations of 4.1 points, settling at 24.8 points. This represents a cooling of initial enthusiasm that followed a recent change in government.
The results highlight a widespread dissatisfaction among surveyed companies regarding the government’s reform efforts to date. Notably, the planned acceleration of housing construction – often dubbed a “housing construction turbo” – has been largely viewed as ineffective. Only five percent of managers polled believe this initiative possesses the potential to meaningfully alleviate pressure on the residential market.
Iris Schöberl, President of the ZIA, voiced criticism directed at the federal government, emphasizing the need for comprehensive structural reforms rather than incremental adjustments. She underscored the requirement for a genuine acceleration of the housing sector and structural changes to effect meaningful progress.
