Real estate - Housing companies cancel construction projects in series
In addition to many private developers, Bavaria's public housing companies are also canceling a series of new construction projects. The Association of Bavarian Housing Companies assumes that its more than 500 member companies will cancel more than ten percent of their originally planned 4,263 new apartments next year. This was announced on Tuesday in Nuremberg by the association, whose members mainly include housing cooperatives and municipal companies.
These companies are expected to build only 3778 new apartments in the coming year. These figures are based on an internal survey conducted by the vdw among the companies.
According to the survey, even greater savings will be made on modernizations, including energy-efficient renovations. According to the vdw, companies are cancelling more than one in five planned apartment modernizations, with 2728 planned projects being carried out in 2012. Accordingly, 716 energy-efficient modernizations were also cancelled.
Association director Hans Maier currently sees "historically poor framework conditions" for residential construction: "Due to the high costs, companies no longer see any way to implement their projects economically." This refers to the fact that both the actual construction costs and the financing costs have risen considerably due to the rise in interest rates.
Residential construction is already declining this year, and the number of building permits has also collapsed nationwide. In this respect, Maier and other experts from the construction and real estate sectors do not yet see an end to the negative trend.
Read also:
- Despite the challenging circumstances, companies like those in the Association of Bavarian Housing Companies, led by director Hans Maier, are still expected to construct 3778 new apartments in the upcoming year.
- The cancellation of construction projects by housing companies in Bavaria, such as those affected by these changes, may impact local real estate markets, particularly in cities like Nuremberg.
- To further decrease expenses, Bavarian housing companies, including Hans Maier's association, are estimated to cancel more than one in five planned apartment modernization projects, totaling 2728 projects.
- The public housing companies in Bavaria, including Hans Maier's association, are not the only entities affected by these financial constraints; numerous private developers are also reportedly cancelling their construction projects due to the rising costs and interest rates.
Source: www.stern.de
