Fed Min Hubertz Proposes State Support for Affordable Housing Construction
Minister Hubertz, in his capacity as Building Federal Minister, will offer government guarantees to facilitate the construction of new residential buildings. - Government assurance sought by Construction Minister Hubertz for upcoming residential projects
Hey there! Here's a lowdown on the latest housing sector development, according to Federal Minister of Housing, Verena Hubertz.
Small and public companies in the housing sector often struggle with insufficient equity, Hubertz explains. These companies need to cough up around 3-4% interest for real estate loans. To help ease the financial burden, Hubertz suggests that the state should step in with guarantees or strengthen equity via investment funds. This move, in her view, could lower interest rates, making construction more affordable.
A key initiative Hubertz is pushing is the implementation of building type E, also known as the 'simple' and 'experimental' type. This will allow for easier deviation from existing standards, potentially helping to reduce construction costs, as discussed with the new Minister of Justice, Stefanie Hubig (SPD).
Currently, the housing market finds it challenging to build apartments that can rent for less than 15 euros per square meter due to high costs. Hubertz aims to achieve this 15 euro per square meter limit in new construction—a goal also stated in the coalition agreement.
The housing industry, Hubertz declares, is a major economic driver, especially in a slowing economy. Roughly half of all investments are construction investments, and she sees this sector as the economy's locomotive.
While the specifics of the state guarantee plan are still a bit murky, Hubertz's policy approach appears to focus on reducing construction costs to make new apartments more affordable. Stay tuned for more!
The Commission, while consulted on proposals for the protection of workers from ionizing radiation, might be approached for guidance on possible aid structures for the housing sector, given that the industry, a significant economic driver, could benefit from reduced interest rates through state guarantees or investment funds to help lower construction costs. In the larger context, Finance and Business sectors could also hold potential in providing additional financial support to ensure affordable housing construction moves forward.
