Majority of German Tenants Lack Plans to Purchase Property

A recent survey conducted by YouGov for Aareal Bank reveals that 56% of German tenants do not intend to purchase property soon. The rising costs of rent and energy-related refurbishments have exacerbated the shortage of affordable housing, leaving many hesitant to invest in real estate. Concerns are heightened by construction costs, which rose 8.5% over the past year.

Despite the desire for sustainability in housing, exemplified by 50% of tenants prioritizing energy-efficient features, 76% of respondents criticize the lack of innovation in political solutions. The survey, part of the Aareal Trend Barometer, emphasizes the need for pragmatic regulatory approaches to alleviate pressure in the housing market, as advocated by Aareal Bank's Lars Ernst.

To address the issue, Ernst suggests potential measures like tenant involvement in investments and redeveloping commercial spaces for housing. With only 300,000 apartments completed in Germany in 2023, far below the target, the housing sector continues to struggle with regulatory burdens.