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Berlin to Miss 2025 Housing Target as Construction Challenges Persist

The city expects 15,000 new units this year, well below its 20,000-unit goal, as approvals drop and costs rise.

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Overview

  • Berlin projects 15,000 new apartments in 2025, falling short of the CDU-SPD coalition's annual target of 20,000 units.
  • Building permits in 2024 declined by 38.5%, with only 9,800 approved compared to 15,900 the previous year.
  • A backlog of nearly 59,000 approved but unbuilt apartments underscores delays in addressing housing shortages.
  • Rising construction costs and shortages of materials and skilled labor continue to hinder new projects.
  • The Senate is leveraging municipal housing firms and the Schneller-Bauen-Gesetz to streamline approvals and reduce costs.