Housing construction - Construction industry does not count on quick recovery
The building industry in Baden-Württemberg needs to prepare for a longer dry spell. A quick recovery will not occur, says Association President Markus Böll in Stuttgart. A stagnation in sales is not an option for the current year. "The past spring was very disappointing for the building industry as a whole." In particular, the residential and commercial construction sectors suffered from extremely weak demand.
In the construction sector, around 115,000 people were employed in the Southwest at the end of the previous year. Böll continues, the Federal Government and the States must all pull in the same direction to boost construction activity. If this fails, the already tense situation on the housing markets, especially in major cities and conurbations, will worsen further. The functionary again demanded a reduction in land transfer tax to 3.5 percent in the Southwest. Building Minister Nicole Razavi (CDU) had previously supported such demands.
Funding for social housing already allocated
Razavi explained, Germany ranks among the bottom in Europe when it comes to home ownership. "That's why, as Building Minister, I believe we need to talk about a reduction in land transfer tax. We should especially help families with their first purchase of home ownership – for example, through tax exemptions. But to seriously discuss this in the country, the Federal Government must first enable targeted tax relief on land transfer tax. That's been a sticking point so far."
At the same time, the industry called for additional millions for social housing. "Other federal states like Bavaria and Hesse are tackling the housing issue much more consistently than Baden-Württemberg." By the end of June, the allocation volume in the Southwest for the year 2024 was already fully committed with applications amounting to 580 million euros. Razavi recently stated, of course, one would wish for more money for social housing. But: "The fundamental problem is the difficulties on the free housing market, where most housing is built."
Building industry Baden-Württemberg
- The building industry in Baden-Württemberg emphasizes the importance of recovery and rest during this challenging period, recognizing the need for recovery, relaxation, and endurance limit.
- To boost sales in the Sales branch of the construction industry, stakeholders suggest implementing housing policy changes, such as reducing the land transfer tax.
- In Stuttgart, the Association President for the building industry in Baden-Württemberg points out that the housing policy should focus on supporting first-time home buyers through tax exemptions.
- Amid the crisis, the Construction industry in Baden-Württemberg calls for additional funding for apartment construction, important to fulfill the housing needs of the population in cities and conurbations.
- The branch of decorations within the construction industry could be a valuable addition to the recovery plan, as it presents opportunities to revitalize and improve the aesthetics of housing structures.
- To ensure a sustainable and long-term recovery in housing, the housing policy and construction activity in Baden-Württemberg need to prioritize rest, relaxation, and the well-being of its residents, reflecting the shared values of living in harmony and togetherness.
