Germany builds 285,900 new dwellings

German builders completed nearly 285,900 new dwellings last year, the highest number in 16 years, data showed on Wednesday, but construction still fell short of expectations and may not ease a drastic shortage of affordable housing. Demand for property is soaring in Europe's biggest economy due to a growing population, increased job security and record-low borrowing costs. With demand outstripping supply in many urban areas, property prices and rents have soared in major cities such as Berlin, Hamburg, Munich and Frankfurt. The Federal Statistics Office said that builders last year completed the construction of 250,100 new residential units, finished the renovation of 31,300 existing dwellings and built 4,500 units for non-residential purposes. The total of 285,900 units was the highest figure since 2002, but marked an increase of only 0.4% on the year.