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Real estate: Geywitz: Construction stable in the crisis – funding for homes

Real estate: Geywitz: Construction stable in the crisis – funding for homes

Due to the rise in interest rates, the dream of owning a home seems to be shattered for the time being. But now the federal government wants to help with the financing.

Building Minister Klara Geywitz wants to boost the construction of new single-family homes with a new subsidy program. As of June 1, families with an income of up to 60,000 euros should be able to get low-interest loans from the state development bank KfW, said the SPD politician on Tuesday in Berlin. For many families, the dream of owning their own home has burst because of the higher interest rates, and the federal government wants to help. The specific conditions are to be announced in the coming week.

Geywitz rated the slight increase in the number of newly built apartments in the past year as positive. “Construction remains stable even in the crisis,” she said. It was a “very remarkable achievement by the entire construction industry in view of a war, several funding freezes in the last year and above all, of course, rising interest rates, material shortages and a noticeable shortage of skilled workers”.

According to figures from the Federal Statistical Office, 0.6 percent more apartments were completed last year than in the previous year. However, the federal government’s goal of 400,000 new apartments per year was again clearly missed. Instead, only 295,300 homes were built. Geywitz referred to a large number of apartments that have already been approved but have not yet been built. The limiting factor is the capacities in the construction industry.

Source: Stern

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