State subsidies - Record demand for housing construction premium
The drawdown of state subsidies for home loan and savings contracts has reached a record level. In 2023, around 203 million euros were drawn down as part of the so-called housing construction premium, according to figures from the Federal Building Ministry (as of December 20), which were first reported by the Funke media group (Sunday). In the previous year, the figure was around 160 million by the end of the year, and in the years before that, the sum was also significantly lower than in 2023.
Married couples up to a certain income limit can claim a maximum of 140 euros per year via the housing construction premium, single people a maximum of 70 euros. The money usually flows into building society savings contracts.
Figures have risen significantly
"The housing construction premium is used a lot, and the figures have even risen significantly in the past year," said Building Minister Klara Geywitz (SPD) to the Funke newspapers. "This shows that many people still want to own their own home or condominium."
The Ministry of Construction assumes that home loan and savings contracts have become more attractive for many against the backdrop of rising interest rates because they can be used to lock in favorable interest rates for real estate financing.
High interest rates and high construction costs
Housing construction is currently in the doldrums due to high interest rates and high construction costs. The federal government's original target of building 400,000 new apartments per year is a long way off. Geywitz expects 265,000 apartments to be completed in Germany by 2024.
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- The Funke Media Group reported on December 20 that the withdrawal of state subsidies for home loan and savings contracts, known as the housing construction premium, reached a record level of 203 million euros in 2023.
- Berlin-based Minister Klara Geywitz (SPD) commented on this trend, stating that the housing construction premium is being used extensively and the figures have even increased significantly in the past year.
- The Federal Building Ministry data revealed that married couples can claim a maximum of 140 euros per year, while single individuals can claim up to 70 euros, with these funds typically going into building society savings contracts.
- Geywitz suggested that the rising popularity of home loan and savings contracts might be due to their attractiveness amidst rising interest rates, allowing people to secure favorable interest rates for real estate financing.
- On the other hand, housing construction in Germany is currently affected by high interest rates and costs, shifting the original target of building 400,000 new apartments per year far out of reach, with an estimated 265,000 apartments expected to be completed by 2024.
- In a live broadcast from Germany, experts discussed the impact of these trends on the nation's finances and the future of housing construction, attracting a large audience interested in this crucial sector.
Source: www.stern.de
