in Germany, finding accommodation is an obstacle course

The real estate crisis has taken hold in Europe, particularly in Germany, where many tenants are struggling to find accommodation. Investors are hoping for a reduction in key rates, while the European Central Bank must decide on Thursday.

The European Central Bank (ECB) must decide on key rates on Thursday March 7, a highly anticipated decision. Those who wish to borrow to invest in real estate are indeed hoping for a decline. Since the rise in rates in 2022, the housing crisis has taken hold in Europe, with too little construction for too much demand. The example is telling in Germany, where finding accommodation is a real challenge, whether buying or renting.

In a district in the south-east of Berlin, on the third floor of the building with the ocher facade, Anna, 19, found the apartment of her dreams: 35 m2, a balcony and a clear view for 600 euros rent monthly, and close to Humboldt University where she is a student.

“It’s difficult to find affordable housing, I’ve been looking for a year and a half, sighs the young woman. There are fewer and fewer visits and sometimes there can be 200 people. As soon as an advert goes live, I send an email right away, within two minutes of publication. This can be for 17 m2 or even a small student room. Honestly, in the long run, I no longer have any demands.”

“After five minutes, I had 85 requests”

That day, around ten other people visited the apartment. Real estate agent Jean-Loup Raynaud, a Frenchman who has lived in Berlin for 10 years, had to sort through the files. “I put the apartment online on the platforms. After five minutes, I had 85 requests. If I had left it for 24 hours, I would have had maybe 2,000 or 3,000. The offer is very low, it’s really an obstacle course to find accommodation because when a tenant moves, through word of mouth, he manages to find a buyer. This type of apartment, in 24 hours, it’s settled .”

In Berlin, where 85% of residents are tenants, the arrival of Ukrainian refugees and the drop in the number of construction sites have further saturated the market. The housing crisis affects all German cities, but it is most severely felt in the capital.