The real estate trade association boasts over 12,500 member companies, including 3,200 property developers, 1,900 property management companies, and 5,500 brokers. According to Gollenz, two-thirds of new housing construction and renovations are carried out by the association’s members. He emphasizes that their members do not require state subsidies but rather a supportive legal framework that does not impede their work.
Despite this support from the trade association, there are still challenges facing the real estate industry in Germany. One major issue is the KIM regulation that places restrictions on debt repayment rates for homebuyers. Under this regulation, debt repayment rates are limited to 40% of household income. Gollenz hopes for a relaxation of this regulation since in Germany, the debt repayment rate allowed is 60% of household income.
Another challenge facing the industry is the ordering principle where paying parties must also hire the agent for rental contracts. This principle has already led to 10% of real estate agents leaving the industry due to reduced revenue streams. Pisecky calls for an immediate withdrawal of this principle to encourage more people to enter the industry and provide greater choice for renters.
The trade association has been presenting housing construction concepts for years that seem to be overlooked by politicians. However, they hope that changes will be considered in the next legislative period by politicians who can provide framework conditions that reduce costs of living and streamline excessive regulations such as fire safety requirements and parking space mandates.
Overall, while there are challenges facing the real estate industry in Germany, with proper support from organizations like Gollenz and a supportive legal framework from policymakers, it remains hopeful that it can continue to grow and contribute positively to society.
