Verena Hubertz's Proposed State Intervention in Housing Market
State Guarantees Initiated by Housing Minister Hubertz for the Construction of New Residential Units - Government Housing project seeks financial assurance from Minister Hubertz for future developments.
Hey there! Time to dive into the world of housing and politics. The new Federal Minister for Housing, Urban Development, and Building, Verena Hubertz, is making waves with her plan to introduce state guarantees for new residential construction.
In an economy where smaller housing companies struggle with insufficient equity, the interest rates on real estate loans can be a significant challenge. Hubertz believes the government can lighten this burden by taking on risks, providing guarantees, or even strengthening equity through an investment fund. By doing so, she hopes to reduce these interest rates, making construction cheaper and more accessible.
To make the construction of new apartments more affordable, Hubertz wants to expedite the implementation of building type E. This type is both "simple" and "experimental," allowing for greater flexibility in departing from previous standards. Hubertz plans to team up with the new Minister of Justice, Stefanie Hubig (SPD), to achieve this. By reducing construction costs, they aim to make housing more accessible and affordable for everyone.
The current market finds it hard to build apartments for cold rent under 15 euros per square meter due to high costs. But Hubertz has set her sights high—her goal is to make under 15 euros per square meter in new construction possible. This limit is also in the coalition agreement.
With half of all investments being construction investments, the housing industry serves as a significant economic driver, especially in a weakening economy. Hubertz sees it as an opportunity to boost the economy and revitalize the construction sector. So, buckle up, folks! With Hubertz at the helm, the housing market might be about to take an exciting turn. Stay tuned for more updates!
The Commission, in the scope of the draft directive on the protection of workers from ionizing radiation, has also been consulted, as finance plays a crucial role in the realization of Verena Hubertz's plan for state guarantees in the housing market. The proposal, which aims to make housing more affordable, is not only a political move but also a business decision, as it seeks to stimulate the general-news-worthy construction sector, especially in a weakening economy.
