Dirk Assmann

The German housing market is in deep crisis. Building permits are declining, cancellations are increasing, and consequently, fewer and fewer projects are being completed. This shrinking supply meets persistently high or even rising demand. The effects of this imbalance are immediately evident in rent price developments. Recently, significant rent increases have been observed, especially for new leases in Germany’s major cities.

By 2050, two-thirds of the people worldwide will live in cities. This development comes with huge challenges for emerging and developing countries, especially in the area of mobility. A new study “Emerging Urban Mobility” by the Friedrich Naumann Foundation shows how these countries deal with these challenges.

New possibilities in rural areas: digital tools, political decisions, and transparent administration can make the countryside an attractive place, bringing together innovation and quality of life. Germany\'s cities are booming. From 2010 to 2020, more and more people moved to the country\'s urban centers. However, public discourse sometimes seems to suggest that there is no life outside Berlin, Hamburg, or Munich. Of course, it is not true.

A study by the Pestel Institute and the Construction Research Institute ARGE caused a stir at the beginning of the year. According to calculations, a housing shortage of over 700,000 units could occur in Germany during this year. This would be the largest housing deficit in over twenty years.

The list of transformative innovations is virtually endless. But five technologies in particular could profoundly influence our society, our economy, and our fight against climate change in the coming years and decades. Autonomous vehicles will fundamentally change the way we get around. The blockchain will revolutionize business. Rapid charging stations will help electric vehicles achieve a breakthrough.

The global covid crisis has hit cities in Germany, Europe, and all around the world. A core characteristic of cities is the crowds of people you see in their centers. Cities are the place where people meet, interact, and exchange ideas.

So far, the COVID-19 pandemic has had little effect on the German housing market. It has left barely a mark on real estate prices or rentals. But the pandemic is not over yet, and even if it was: the past months have triggered some developments that will transform our working world and are likely to have a considerable impact on the housing market in the long term.

Berlin’s recently introduced rent control policy is Germany’s single most stringent rent regulation tool. The law prohibits any rental increases for a period of five years. In the case of new rentals, the rent a landlord is allowed to charge is determined by fixed reference values based on the age and fittings of the unit in question.

Regional economic differences are not the exclusive preserve of Germany. They exist in almost all economies. However, the inequality between east and west Germany, can also be explained by means of a different divide: the economic gap between urban and rural areas.