Overview
- In early July 2026, data and forecasts from lenders and property platforms showed renewed national price gains, with the BVR forecasting about a 3% rise and ImmoScout24 reporting year‑on‑year asking‑price increases for apartments and tighter buyer negotiation margins.
- New construction is not keeping up with demand as the BVR estimates only roughly 58% of needed new units will be delivered in 2026 and many approved projects remain unfinished because of permitting delays, builder insolvencies and financing bottlenecks.
- Household affordability is worsening after owner‑occupied prices rose about seven percentage points faster than disposable incomes from 2018–2025, leaving many young buyers reliant on inheritances or family support to purchase a home.
- Structural risks are growing as rising renovation and construction costs — industry estimates put building costs about 50% higher since 2020 — make energy upgrades unaffordable for some owners and push at‑risk properties toward becoming 'stranded assets' in weaker regions.
- Experts say policy fixes could include targeted purchase tax relief and first‑buyer support and faster, cheaper delivery of new housing, since high transaction costs, strict energy rules and slow approvals are key barriers to wider homeownership.