The German real estate industry is facing massive challenges. The spring report by the real estate experts on the real estate industry in 2026 paints a sober picture: Germany is in a structural crisis. The real estate industry is suffering as a result.
A sustainable real estate industry is created by enabling. Building type E, lower ancillary purchase costs, simpler and more uniform planning and approval procedures, and reliable rules create the conditions for affordable new construction, conversion and repurposing. The situation in residential construction is particularly alarming. Only 215,000 completed apartments are expected in 2026 – with an annual demand of 257,400 residential units until 2040. "The gap is getting bigger instead of smaller," warns ZIA President Iris Schöberl.
The report assesses the measures taken by the federal government to date as insufficient. The "construction turbo" is making the right adjustments, but it is not the structural innovation that is actually needed. The "construction turbo" allows for deviations from building planning law. This is to be welcomed, emphasises Prof. Lars P. Feld from the Walter Eucken Institute. The special infrastructure and climate neutrality fund will only provide real growth impetus if the funds are used as a supplement rather than a replacement. "What we need are not gradual adjustments, but fundamental structural reforms," emphasises the real estate expert.
The 2026 Spring Report formulates specific demands: • Simplification and harmonisation of planning and approval procedures – central to rapid construction • Reduction of ancillary acquisition costs, in particular land transfer tax • Review of rent regulation – caps and socialisation ideas exacerbate the supply bottleneck in the long term • Introduction of a legally secure " " (building type E) – enabling cost-effective and efficient construction • Tax incentives – for new construction and renovation investments • Simplification of building permit regulations for conversions and mixed use of existing properties • Revitalisation, redensification and conversion of existing and conversion areas.
The complete 2026 spring report and a summary can be found at www.fruehjahrsgutachten.de.
Photo: © Albrecht Fietz, Pixabay
