Exploding real estate prices: Garmisch-Partenkirchen's success model in danger

Created: 11/26/2022, 08:00

By: Andreas Seiler

Presenting their research results in the Kongresshaus: (from left) Prof. Dr.

Christian Steiner, Theresa Kors and Dr.

Gerhard Rainer.

© Krinninger

The exploding real estate prices are increasingly becoming a problem for Garmisch-Partenkirchen.

A research group from the Catholic University of Eichstätt-Ingolstadt warns of an undesirable development.

Above all, the boom in holiday homes is taking away valuable living space from the market.

Garmisch-Partenkirchen - The problem is well known - and makes many local politicians worry: Living in Garmisch-Partenkirchen is the purest luxury - a trend that has recently intensified.

The figures, which a working group from the Catholic University of Eichstätt-Ingolstadt determined as part of a funded research project, speak for themselves.

An example: In 2011, a single-family house cost an average of 625,000 euros; in 2021 it was already 1.53 million euros.

The result: normal earners have no chance of owning their own home.

And the rents climbed to dizzying heights.

The scientists in the field of human geography led by Professor Dr.

Christian Steiner took a closer look at the connections between tourism and the real estate market in the district town, evaluated data and statistics and spoke to numerous experts.

Their result, which they are now presenting in the Kongresshaus, is alarming - and is likely to heat up the housing policy debate.

Young population is displaced

According to the diagnosis by the university group, it is precisely the working and young population that is being pushed out because they can no longer afford the prices.

Steiner spoke of a "problematic development" - and warned: "This will massively increase the shortage of skilled workers." Many companies are already complaining that they cannot find employees because there is a lack of affordable housing.

Ultimately, Steiner emphasized, Garmisch-Partenkirchen's economic success model is at stake.

Because the effects of the real estate crisis are being felt particularly hard by tourism companies.

Low wages are widespread in this key sector in particular, which makes it even more difficult for those affected to find accommodation.

A key driver is the boom in holiday apartments and houses.

There are now around 900 on the market, some of them at the luxury level.

This investment appears to be extremely lucrative -- and attracting investors.

Specialized agencies offer real all-round carefree packages and take care of everything, from marketing on the Internet to cleaning.

A functioning business model in which the tourism aspect has receded into the background.

"It's about the return," says Theresa Kors, a research associate on the research project.

The crucial question is: what can the church do?

One thing is certain: “There is a need to take countermeasures,” says Steiner.

He named a number of possibilities - starting with urban development control through to the establishment of a municipal housing association and an active area policy.

Remarkable: According to the scientists, the increase in the second home tax does not bring that much.

The reason: the additional burden is simply accepted by the mostly wealthy owners.

Contractor demands building land designation

After the presentation, a lively discussion developed among the visitors of the evening, including local councillors.

Tenor: It makes no sense to pass the buck to each other.

All actors would have to try to find a way out of the misery.

A few approaches have been mentioned.

In the opinion of Franz Hummel, the municipality has quite effective instruments at its disposal.

According to the contractor, it could, for example, designate building land and provide it with social requirements or relax building regulations.

At the heart of the problem are the immensely high prices for land.

Together with the increased construction costs and interest on loans, they set the price spiral in motion.

The entrepreneur explained that local heirs also try to achieve maximum proceeds from sales – often in the form of a bidding process.

There were also voices calling for a limit on the number of vacation rentals.

"We need a stop at the guest beds," warned Dehoga District Chief Daniel Schimmer, who sits on the municipal council for the Free Voters.

This is the only way to ensure high-quality tourism, said the hotelier.

District master builder Alkmar Zenger made a suggestion.

It is possible to exclude holiday homes in certain local areas.