The German real estate sector is experiencing a significant shift in sentiment following the summer break, according to a new survey. A joint study by the Institute for Economic Research (IW) and the German Real Estate Committee (ZIA) reveals a dampened outlook among real estate managers, indicating a waning of optimism previously observed after the recent change in government.
The survey, encompassing responses from 1,200 real estate companies, indicates a decline in expectations by 4.1 points to 24.8 points. This represents a marked change from earlier, more hopeful projections.
A significant concern voiced by the surveyed companies centers on the government’s reform efforts to date. Many view the planned acceleration of housing construction – often referred to as a “housing construction turbo” – as largely ineffective. Only five percent of the surveyed managers believe this initiative possesses the potential to substantially ease pressures within the housing market.
Iris Schöberl, president of the ZIA, expressed her criticisms of the government’s approach, stating a need for “a real turbo and structural reforms – not piecemeal solutions”. The prevailing sentiment suggests a desire for more comprehensive and impactful policy adjustments to address the challenges facing the German real estate landscape.