Bavaria: LBS expecting €7bn in new business for 2007
Despite discontinuation of the first-time home buyer tax allowance, LBS Bayern wishes to continue expanding its transactions in building savings contracts this year. The volume of new business could surpass last year's €6.85bn, said Franz Wirnhier, LBS management's spokesperson. More than half of this amount (€3.56bn) has already been attained during the first six months of 2007. On the other hand, the number of building permits dropped by 52% for one-family houses and 49% for apartments from January through April. "The construction of one-family houses in Bavaria was never in such bad shape," Wirnhier commented. In thriving locations, he said, a shortage of apartments is gradually materializing, and for this reason, experts have long been prophesying exploding rents and sharply rising construction and purchase prices.