Dresden Secures Up to 1,200 Residential Units
Getting a Whole New Looking Dresden: 1,213 Apartments Changing Hands
Dresden's urban landscape is set for a massive transformation as the municipal housing company WiD prepares to acquire 1,213 apartments from real estate giant Vonovia. The deal, scheduled to close pending city council approval, will make WiD the new landlord, Mayor Dirk Hilbert announced.
Tenants can rest easy as rents and notice periods remain unaffected, and Vonovia will continue to be a significant part of Dresden's community. The transaction involves properties in Prohlis and Neustadt districts.
On top of the apartment purchase, Vonovia is offloading around 12 hectares of undeveloped land to Dresden. These parcels could potentially accommodate 1,800 future homes. The total cost of this deal? A hefty 87.8 million euros.
Mayor Hilbert enthusiastically called it "a wonderful day for Dresden": "This move will more than double our municipal housing stock and secure valuable land for future housing development."
City Council's SkepticismCasting a Shadow Over the Deal
The city council, however, seems less than enthused. Critics, particularly from the SPD, have branded this apartment acquisition as nothing more than a pipe dream, arguing that at least 3,000 apartments should have been bought. Hilbert, in their view, has "evolved from a tiger to a doormat."
Councilor Albrecht Pallas of the SPD demands that the city buy all 6,000 apartments offered for sale by Vonovia, questioning the steep 88 million euro price tag. To him, this sum equates to a significant hike in apartment prices compared to the 2006 sale.
The Free Voters, too, have expressed concern, with councilor Jens Genschmar stating that they'll carefully review the proposal to safeguard the interests of tenants. He considers the deal's approval a mere formality a limelight-grabbing gesture by the mayor.
In 2006, Dresden sold its housing companies to the US-American investor Fortress for approximately 1.7 billion euros, becoming the first major German city to wipe out its debts. However, this move was met with controversy as the city lost all its "crown jewels." In 2015, Dresden announced plans to establish a new housing construction company, and in 2017, the city council established WiD. (with dpa)
A deeper dive into the city council's criticism might uncover concerns about financial terms, strategic housing impacts, transparency, or long-term management of the properties. Until more information becomes available, these conclusions remain speculative. Stay tuned for updates on this developing story!
The city council's skepticism towards the deal for 1,213 apartments from Vonovia in Dresden appears to stem from concerns about the financial terms, strategic housing impacts, transparency, and long-term management of the properties. The SPD councilor Albrecht Pallas, for instance, questions the steep 88 million euro price tag and argues that the city should buy all 6,000 apartments offered for sale by Vonovia. The Free Voters, on the other hand, are carefully reviewing the proposal to safeguard the interests of tenants, and councilor Jens Genschmar considers the deal's approval a mere formality and a limelight-grabbing gesture by the mayor.
