Steady Decline of Move-In Ready Apartments in Thuringia, Germany
Fewer apartments in Thuringia remain unoccupied by fifty units - Approximately four-tenths more vacant homes unoccupied in Thuringia
In the heart of Germany, the state of Thuringia saw a substantial decrease in the number of apartments available for occupancy last year. A grand total of 3,310 apartments were completed in the state in the year 2024 - a staggering drop of 813 fewer than the previous year, as reported by the Thuringia State Statistical Office in the bustling city of Erfurt. This translates to a whopping decrease of 19.7 percent in the apartment supply.
Most of these apartments were built as brand-new constructions. Through remodeling and expansion of existing buildings, 683 apartments were created (compared to 587 apartments in 2023).
The dream of homeownership in Thuringia took a hit too, with a disappointing 26.2 percent decline reported in 2024. Approximately 1,000 new single-family homes were completed last year, which is 355 fewer than in 2023.
Of the completed new apartments, a whopping 54.6 percent were born under the guidance of private developers. Businesses took responsibility for 25 percent, while public builders such as municipalities, the federal government, and the state were responsible for a mere 0.8 percent. In 2023, public builders accounted for a robust 9 percent of the apartments completed.
Diving deeper:
While the specific construction costs for apartments in Thuringia are scarce in readily available search results, Deutsche Konsum REIT-AG provides an indicative figure of around €1,800 per square meter for building new properties in general[4]. That said, the costs can vary significantly between regions due to differences in local market conditions, labor costs, and availability of materials. In addition, economic factors such as inflation and interest rates can also impact construction costs by affecting the cost of materials and financing. Given Thuringia's slumping apartment supply and high demand, it's reasonable to expect that construction costs might be on the rise. If you're interested in pinpointing precise construction costs in the region, consult local construction companies or real estate experts for the most accurate information.
- In light of the significant decrease in move-in ready apartments and the high demand in Thuringia, a review of the community policy may be necessary to address the housing shortage, explore possibilities for increased funding, and work with real-estate developers to prioritize more affordable housing construction.
- For potential investors looking to build properties in Thuringia, it is crucial to consider the implications of rising construction costs due to high demand, as well as exploring strategies for effectively navigating employment policies that may facilitate workforce recruitment and project completion in the housing-market.
