German housing construction is taking steps backwards. Federal government's target of 400,000 new apartments per year is now a long way off.
“We are no longer competitive in Germany when it comes to building,” said the President of the Central Real Estate Committee (ZIA), Andreas Mattner. The ZIA is proposing a program from the state development bank KfW that would reduce market interest rates to two percent. With a funding amount of three billion euros, this would bring about 100,000 additional apartments.