DIP partner Aengevelt Immobilien anticipates a further reduction in the available supply of affordable rental flats in the future. This development is largely attributed to political and legal regulations.
Aengevelt Immobilien's analysis highlights that the current political framework is not primarily aimed at expanding the supply of affordable housing. Rather, certain interventions appear to influence the market in a way that could lead to a restriction rather than a diversification of the supply.
Factors contributing to the supply shortage
Several factors contribute to this pessimistic forecast. It is assumed that interventions in rental prices or building regulations, while seemingly positive at first glance, could have long-term counterproductive effects on the willingness of project developers and owners to invest. Reduced profitability in the affordable rental housing segment may lead to new projects not being realised or existing units being withdrawn from the rental market.
The consequence of such a development would be a more difficult situation for those seeking housing, particularly in metropolitan areas. The pressure on the housing market is already significantly high there, and a further reduction in the supply of affordable units would intensify social challenges. Demand for affordable housing remains consistently high, while supply increasingly stagnates or even shrinks.
Outlook for the rental market
From the perspective of the real estate industry, stable and predictable framework conditions are essential to incentivise investment in housing construction. The current trend towards a shortage in the supply of affordable rental flats is a clear signal to political decision-makers to comprehensively assess the impact of their measures on the entire property market.
It is emphasised that a sustainable solution to the housing question requires an interplay of market-economy principles and targeted, yet not market-distorting, support measures. Otherwise, there is a risk of a sustained exacerbation of the supply situation in the affordable rental housing segment.
