There is a shortage of 1.9 million affordable apartments in 77 major German cities.
The problems with the housing market in Europe and Germany
Germany is among the countries in Europe with the highest rent and property prices – in Munich, the price per square meter surpassed 10.000 EUR in 2022. Since 2015, housing price growth in the country has outpaced income growth by 33%. This has led to Germany having one of the worst housing affordability indexes across Europe. Furthermore, the demand is quickly outgrowing the supply – out of the estimated 700.000 new housing units needed per year, the government has committed to only half of this number. The reality is actually considerably worse, as even this number has been missed by a large margin – in 2022, the number of new housing units amounted to 280.000, lower than in the previous year.
One of the latest, most anticipated housing policy reports in Germany left more questions than answers. Amidst the raging housing affordability crisis, the government is failing to provide the necessary solutions and is even cutting back in multiple areas – a move that is expected to worsen the whole situation in the foreseeable future.
One of the biggest concerns in the latest report is that the estimated 400.000 new housing units for this year, which was necessary to meet the growing demand, was missed by a considerable margin. Out of these, the most considerable shortage was seen for apartments that were meant for people in need with lower than average income – less than 25% of the 100.000 goal for this segment were completed. Beyond that, the construction sector is facing considerable job cuts, which is going to make the supply struggle even further at least in the short term, leading to an even worse crisis than currently.
Further concerns are the cutbacks on low-interest loans for housing cooperatives – these loans were introduced with the purpose of easing the pressure of traditional mortgage loans, which are seeing considerable interest rate hikes. This makes it difficult for borrowers and reduces the incentive of getting your own home, which is one of the reasons why in Germany more than half of the population is renting. The cutbacks also included some projects that have already been initiated before the loan has been approved, which could result in abandonment of the construction for an unknown period of time.
It is evident that government support for housing in Germany – as well as many other countries suffering from the lack of affordable housing – is not only far from enough, but even diminishing lately – and that is during one of the most turbulent times for the real estate sector on a global scale. This causes for alternative solutions that will step in and provide some solid ground for a new direction soon.
Blockchain Property Gate: a new chapter for the sector
Blockchain Property Gate is a blockchain-based ecosystem for real estate that aims to provide a solution to the ongoing crisis with real estate shortages, housing affordability and inaccessibility of investments due to high capital requirements.
The project creates a circular economy that consists of property selection, acquisition and renovation, creating a good balance of cost reduction and efficiency. The methodologies of Blockchain Property Gate are based on the vast experience of its team on the real estate market. The overall goal is to reduce the average prices for buyers and investors by at least 20% to 30%.
The BPGT token is the fuel of the Blockchain Property Gate real estate ecosystem. It is an ERC1400 security token developed on the Ethereum blockchain that has already successfully passed its technical audit. BPGT essentially represents real estate assets and thus provides high price floor security for investors, even in a case of a complete insolvency of the company behind the project. Beyond that, the token is expected to represent the price appreciation of the properties – both through their natural increase in price and the methodology of Blockchain Property Gate that further enhances their value.
The Blockchain Property Gate project has a structured execution plan that consists of various development phases, each building upon the progress of the previous one. It includes the total acquisition and renovation of 100.000 housing units on an international scale over a period of 10 years, as well as the acquisition of multiple real estate and house management companies that will allow the model to scale for the planned expansion. The company will continuously raise capital in the process, including further investments with the BPGT token.
The long-term vision of Blockchain Property Gate is a complete revolution for the global real estate market. You can learn more about the project and sign up for the whitelist of early adopters who will receive access to special discounts on their private sale at www.blockchain-property-gate.com.
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