Get Ready to Slash Construction Costs and Cut Interest Rates: Minister Hubertz's Ambitious Housing Plan
State Guarantees to Be Issued by Housing Minister Hubertz for New Apartment Construction - Government Assurance Sought by Construction Minister Hubertz for New Residential Projects
Hey there! Let's dive into some exciting news about the housing sector, shall we?
In a bold move to revitalize the real estate market, the newly appointed Federal Minister of Housing, Verena Hubertz, plans to introduce state guarantees for new apartment construction. With her background as an economist, Hubertz aims to leverage these guarantees as a tool to lower interest rates, making it more affordable for developers to build new apartments.
According to Hubertz, many housing sector companies struggle to secure sufficient equity capital. These companies often face high interest rates, around 3-4%, for property loans. By providing state guarantees or strengthening equity through an investment fund, Hubertz hopes to make borrowing cheaper and construction more feasible.
To further drive down the costs of building new apartments, Hubertz wants to fast-track the implementation of the so-called building type E. This experimental, yet simple, building standard allows for more flexibility when it comes to deviating from previous construction standards, potentially reducing costs. Hubertz hinted that she will collaborate closely with the new Minister of Justice, Stefanie Hubig (SPD), to make this project a reality.
The current market struggle to construct apartments that cost less than 15 euros cold rent per square meter, due to high costs. But Hubertz has ambitious goals: she wants to make it possible to construct apartments below 15 euros per square meter, a goal supported by the coalition agreement.
Hubertz believes the housing sector plays a crucial role in boosting the economy, especially in turbulent times. "Around half of all investments are construction investments," she explains. "The housing sector can serve as a powerful economic engine."
Stay tuned for more updates on this exciting initiative by Minister Hubertz as she works to reinvigorate the German housing market!
The Commission, consulted on a draft directive related to worker protection from ionizing radiation, might consider the potential financial implications for businesses and the economy, given the housing sector's strategic position in driving general-news worthy economic growth – as discussed by Minister Hubertz. As the Minister aims to cut construction costs and interest rates, any progress in this area could have political ramifications, impacting the housing sector and beyond.
