Turn of the year - Housing companies fear continuing downward trend in 2024
The downward trend in Bavarian residential construction could accelerate in the coming year. This is what the Association of Bavarian Housing Companies fears based on an internal survey of its member companies published in Munich on Wednesday. According to the survey, the more than 500 companies have already completed fewer apartments this year than in 2022. 40 percent of member companies intend to reduce their investment in new construction next year, according to the survey.
The majority of VdW members are socially oriented housing companies, including 357 cooperatives and 108 municipal companies. According to preliminary figures from the association, the companies built around 4,500 apartments this year. That would be almost 800 fewer than the 5267 apartments completed in 2022 according to previous VdW figures. 152 companies with 185,000 apartments took part in the survey.
According to the survey, VdW members see the biggest obstacles to residential construction as being the rise in interest rates on loans and the political framework conditions. Association director Hans Maier accused the federal government of "funding chaos" in connection with the housing subsidy programs of the state-owned KfW Bank.
"After the funding for cooperative housing was stopped at the end of November, the program for climate-friendly new construction has now also been hit," he criticized. "The big question marks over the future of the funding are causing planning uncertainty." This criticism relates to the cuts in the federal budget recently agreed by the Berlin coalition.
There is also a great deal of uncertainty among housing associations with regard to the state government's announced goal of climate neutrality by 2040. The association also criticized the lack of clarity regarding Berlin's funding programmes and their financial resources on this point. Furthermore, there is also uncertainty about the politically desired or suitable energy sources and the shortage of tradespeople.
According to the survey, almost 80 percent of the companies surveyed do not consider the financial support for replacing heating systems and other projects to be sufficient. Almost two thirds - 63% - assume that rents will rise significantly due to energy modernization.
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- Despite the concerns of housing companies, there are ongoing housing construction projects in Munich, with numerous new buildings being constructed throughout Bavaria.
- The downward trend in housing construction in Bavaria, predicted by many housing companies, has resulted in a turn of the year with a decrease in the number of apartments completed compared to 2022.
- In response to the funding chaos in connection with housing subsidy programs, several housing companies in Bavaria, such as those in Munich, have decided to invest less in new housing construction in the coming year.
- The housing policy in Bavaria, particularly in Munich and other parts of the state, is closely followed by housing companies, as they rely on government support and funding for their construction projects.
Source: www.stern.de
