Let's Talk About Hubertz's Proposal for Affordable Housing
State Guarantees for New Housing Construction to Be Provided by Minister Hubertz - Government securities sought by Construction Minister Hubertz for upcoming residential projects.
Hey there! Ever wondered how we can make housing more affordable? Well, let's chat about the Federal Minister of Housing, Hubertz's latest plan.
Many companies in the housing sector are struggling due to insufficient equity capital. Hubertz believes that the state can step in and help by offering guarantees or investing in an equity fund to lower their high interest rates (3-4%). By taking on risks, Hubertz thinks this move could significantly lower the cost of construction, making it more economical to build.
Hubertz is also evidently trying to speed up the implementation of building type E. This designation, which stands for both "simple" and "experimental," allows for more flexibility in design and construction processes, potentially reducing costs. Working together with the new Minister of Justice, Stefanie Hubig, will be key in achieving this goal. It's all about finding ways to reduce construction costs, quicker.
The market is already finding it challenging to build apartments for less than 15 euros per square meter due to high costs. Hubertz wants to set a new target: achieving an affordable rate of under 15 euros per square meter for new constructions. This goal is also mentioned in the coalition agreement.
The housing sector is an economic powerhouse, with around half of all investments being construction-related. Hubertz sees it as a potential engine for the weakening economy.
Now, I know what you might be thinking, but let's not forget that several other initiatives are also part of the coalition agreement to promote new construction and modernization of housing in Germany. These include:
- An investment fund for residential construction with public guarantees and private capital.
- KfW subsidy programs merged into two key programs, one for new construction and one for modernization.
- A focus on creating a large number of apartments with a basic rent of EUR 15.00 per square meter in tight housing markets.
- Examination of tax measures, substitute equity capital, and assuming state securities to further support residential construction.
So, yeah! Hubertz's proposal for affordable housing is more than just a plan; it's a step towards tackling the construction crisis and rising housing demand in Germany. But, remember, it's not just about this one proposal – there's a broader picture to consider as well. Stick around, and we'll continue to keep you updated on the latest in the housing sector! 🏠👌
The Commission, with its expertise in occupational health and safety, has also been consulted on the draft directive on the approximation of the laws of the Member States relating to the protection of workers from the risks related to exposure to ionizing radiation. Considering the housing sector's significant role in the economy, the industry, finance, and business communities might find it beneficial to collaborate with Hubertz in his efforts to promote new construction and modernization of housing in Germany.
