No promotion, higher prices
Association: 150,000 apartments will not be built for the time being
2/12/2022, 7:38 am
Construction prices are skyrocketing, KfW subsidies are no longer available: for many house builders, planning security is lost. As the industry association GdW complains, tens of thousands of apartments would not be built for the time being. Many renovations are also being postponed.
According to the housing industry, due to rising construction prices and a lack of funding, a number of projects have to be postponed. “It’s about almost 150,000 apartments that cannot be built as planned by the socially oriented housing companies alone,” said the president of the industry association GdW, Axel Gedaschko, of the “Welt am Sonntag”. Another 70,000 apartments would not be renovated for the time being.
One reason is the decision to stop KfW funding programs for energy-efficient new buildings in January. Planning security was lost as a result. “More than half of the GdW companies have to postpone their current construction and renovation plans because of the sudden stop in funding,” said the head of the association. Almost a quarter of the companies have buried the new building plans.
The federal government surprisingly stopped the funding program due to a flood of applications, but then announced that applications submitted before January 24th would be considered. Further applications are no longer possible.
Gedaschko also complained about rising construction prices. The more the prices and specifications shoot up and the more time elapses for new subsidy programs, the greater the wait-and-see attitude among builders.