The trade association boasts 12,500 member companies, which includes 3,200 property developers, 1,900 property management companies, and 5,500 brokers. According to Gollenz, two-thirds of new housing construction and renovations are carried out by the association’s members. He emphasizes that their members do not require state subsidies but rather a supportive legal framework that does not impede their work.
On one hand, there are subsidized municipal and non-profit housing projects, while on the other hand, there is commercial housing represented by Gollenz. Due to increased interest rates, stricter regulations on loans and debt repayments (KIM regulation), and rising prices, the demand for new construction has decreased significantly. Gollenz stresses the need for framework conditions that reduce the cost of living, which could be achieved by streamlining excessive regulations such as fire safety requirements and parking space mandates.
A major issue for potential homebuyers is the debt repayment rate restricted to 40% of household income according to the KIM regulation. Gollenz hopes for a relaxation of this regulation since in Germany, the debt repayment rate allowed is 60% of household income. The real estate industry has been presenting housing construction concepts for years that seem to be overlooked by politicians, prompting the need to increase pressure on policymakers.
Real estate agents are also facing challenges, with 10% already leaving the industry due to the ordering principle where the paying party also hires the agent. Pisecky calls for the immediate withdrawal of this principle for rental contracts, which previously required the tenant to pay the agent’s commission before July 2023. The industry is hopeful that changes will be considered in the next legislative period by politicians.