Munich: Building contractors warn of an “absolute rent explosion�
The project team of the Bavarian Housing Industry, a cooperation of multiple organizations of Munich's residential trade and industry, anticipates drastic rental price increases for the coming years in the Bavarian state capital. “We are on the brink of an absolute rent explosion,� says Josef Kastenberger, president of the Bavarian Association of Free Property and Residential Firms.
According to the point of view of the building companies, the principal cause of the price increases is the shortage of residences for rent: A good 10,000 people move to the metropolis on the Isar River each year, but approximately 95% of the 4,000 to 5,000 newly-built residences are obtained by buyers and owners. Kastenberger therefore warns of bottlenecks and “alarming conditions.� In good locations, there are today already often more than 50 interested parties. The peak of the development is expected to be achieved in two years. Rudolf Stürzer of the association Haus & Grund confirms the surging price increase: Since the beginning of the year, the legal department of the association of homeowners receives daily dozens of requests for help for rent increases.