Top 7 Locations: Building Activity Varies Heavily

In Germany’s seven most popular locations, construction doesn’t meet the growth in population. But there are differences between the locations.

Right now, only Hamburg manages to keep pace with the growth. (Source: pexels.com)

In the recent study by the Empira group, researchers discussed the ratio between new construction activity and drawn-in residents of the “Top 7 cities in Germany” within ten years since 2006. They discovered that only Munich with 0.52 flats per every new resident is able to provide just enough living space for two-person-households. All the other cities can’t provide sufficient accommodations at this rate and differ greatly from each other.

Frankfurt for instance reaches a ratio of 0.46, Hamburg 0.43. In Stuttgart (0.34) and Düsseldorf (0.32), three-person-household would be necessary. The worst situation is present in Cologne and Berlin. In Cologne, the ratio is 0.26 flats per resident, which means that four persons would need to share a new flat. Berlins ratio of 0.11 flats suggests that only every ninth new resident obtains a flat.

Looking at the data behind the key figure “flats per 100 residents” reveals that proportionate provision decreased in almost every of the seven cities within these ten years. Despite its still sufficient supply, Munich records the strongest decline from 58 to 53.8 new flats. While this development only took place to a smaller extent in Cologne (from 53 to 52 flats), Hamburg was able to keep its growth despite the current trend. That means that it can still provide 52.5 new flats for every one hundred new residents.

For the Empira report “housing construction in the top 7 cities”, the most popular locations were examined for ten years on the development of various factors like housing shortage, as well as the resulting potential for investment for project developers. The study was composed and conducted by the head of research, Professor Dr. Steffen Metzner. A crucial part of the data stems from the federal offices of both state and counties.

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