Germany’s Ministry of Housing announced that the federal government provided support last year to help finance the construction and purchase of more than 64,500 apartments and homes. The ministry noted that this outcome is considered positive given the challenges currently facing the construction sector.
The ministry added that the six support programs designed to serve various social groups will continue this year, with plans to significantly simplify funding procedures in the future.
In this context, Zorin Bartol, State Secretary at the Ministry of Housing, said that indicators in the construction sector reflect a positive trend. He stated: “Surveys point to the end of the recessionary period and the beginning of a noticeable recovery phase. We have seen an increase in building permits issued over the past several months, a return of optimism within the sector, and a marked rise in investment volumes.”
The “Climate-Friendly New Construction” program represents the main source of support for most housing units. Through this initiative, investors, cooperatives, companies, and individuals have been able to obtain subsidized loans from the state-owned KfW development bank to build environmentally friendly and energy-efficient buildings.
Municipalities have also received financial grants under this framework. Interest rates on these loans were improved last September, resulting in support for 36,747 housing units, with total commitments reaching approximately €4.5 billion.
Meanwhile, the “EH55” program, which was reactivated last December, supported nearly 14,000 housing units. The program provides subsidized loans for buildings that meet energy efficiency standards and make significant use of renewable energy sources.
On the other hand, demand has been weak for the “Young People Buy Old” program, which is designed to support families purchasing homes in need of renovation. Only 690 homes have received funding approval so far.
Data also showed limited interest in the program that supports the purchase of shares in housing cooperatives for owner-occupation. As a result, the federal government decided to improve the support conditions for this program during the current week to encourage greater public participation.
