The new German coalition government of the Christian Union (CDU/CSU) and Social Democrats (SPD) has announced plans to strengthen building activity with the aim of tackling the housing crisis. A good news for those who intend to build in Berlin – with Pandora’s box opening for the old Templhov airport, which is now a favorite recreation area in the German capital.

Once upon a time of military parades of the Prussian Army, and then a famous air base, Tempelchofer Feld, as it is now officially called, opened to the public as a recreation area in 2010. With an area exceeding 750 acres, it is one of the largest urban green spaces in the world and in the world. Now, construction plans that had been abandoned in the past seems to come back dynamically.

Building fever on the horizon for Berlin?

The Berlin government wishes to build numerous apartment buildings, five -storey buildings, as well as several individual higher buildings, reducing central green area, from 754 to 445 acres. About half of the structured area is based on the design to be converted into commercial spaces.

The lack of affordable roofs and raised rents have perhaps become the most pressing social issue of the century in Germany. About 800,000 apartments are absent, according to the German Federal Statistical Service, while an average rent in Berlin has increased by 85.2% – from € 8.50 per square in 2015 to € 15.74 in 2024.

To tackle the problem, the new German government has announced plans to accelerate building activity (“Wohnungsbau-Turbo”), a reduction in bureaucracy, tax cuts and funding programs for housing construction and modernization. These plans were immediately accepted as “a huge step” by the Federal Association of German Home and Property Companies (GDW).

High Rents, Empty Apartments, Short Term Lease

The Department of Urban Development, Building and Housing in Berlin estimates that more than 100,000 new apartments are needed to condemn the housing market. About 200,000 people are expected to move to Berlin by 2040, which means that the city has to build an average of 20,000 new apartments a year to meet demand.

Efforts to alleviate the housing crisis, from rent control and more stringent lease arrangements, to the fighting of the gaps or short-term rented furnished apartments, have failed, says Christian Meller, president of the Architects and Engineers.

“Berlin” problems, well known in Greece

The housing crisis is a problem that Greece is facing, while a combination of economic recovery, foreign investment and tourism still launches real estate prices in the country, as Alpha Bank’s recent survey shows: 54% of the respondents is considered impossible for 68%.

Curated by: Chryssa Vachcevanou