Spicing Up Construction: Federal Minister Hubertz Proposes State Guarantees for Housing Builders
State Guarantees for New Housing Projects to be Offered by Minister Hubertz - Government Assurance Pursuit by Construction Minister Hubertz for New Residential Projects
Hey there! Gearing up for some housing news? Here's the scoop.
It seems Germany's fresh-faced Federal Minister of Housing, Verena Hubertz, is giving the construction industry a much-needed boost. In a nutshell, she's planning to offer state guarantees for those brave souls who dare to take on new housing projects.
You see, a bunch of smaller companies and even some public entities are struggling with equity issues when it comes to securing those hefty property loans. These guys are coughing up an average of 3-4% interest! Hubertz is proposing that the state step in, take on some of the risk, and hand out some guarantees or inflate equity by investing in a fund. Boom. Magic money!
As a clever economist, she reckons this could shave off some serious interest, making buiding projects way more doable.
Now, to make apartment construction more affordable, Hubertz wants to roll out something called "Building Type E". "E" stands for "simple" and "experimental" - think of it as a brainstorm session where the old school rules get a little challenged. Collaborating with the Minister of Justice, Stefanie Hubig (SPD), this is THE project that's gonna help lower those construction costs.
At the moment, the market is struggling to churn out apartments that can be offered at less than €15 a square meter thanks to those relentless construction costs. Yikes! But guess what? Hubertz is aiming high. Her goal? To make apartments that cost under €15 a square meter in new construction a reality. And she's promised the sky and beyond, stating this limit is even enshrined in the coalition agreement.
But why is this important? Well, housing construction is pretty much a powerhouse in a struggling economy. Approximately half of investments are construction investments, and Hubertz believes it could rev up the economy like a locomotive!
So, there you have it. The Federal Minister of Housing wants to shake things up in the construction industry. Keep an eye out for those state guarantees and affordable apartments, folks! Let’s get building!
- Verena Hubertz
- Guarantee
- SPD
- Zeit Online
P.S. No juicy details on specific state guarantee policies from the German government just yet. Keep an ear to the ground for official announcements or press releases from the Ministry of Housing, Urban Development, and Construction for the latest news.
The Commission, while consulted on the draft directive concerning worker protection from ionizing radiation, was not directly involved in the discussion on state guarantees for housing builders, as proposed by Federal Minister Verena Hubertz. Nonetheless, these potential guarantees, if implemented, could have far-reaching implications, not just for the construction industry, but also for the overall economy, especially finance, business, politics, and general-news sectors. The potential reduction in construction costs, as a result of state guarantees, could stimulate investments, aiding recovery and growth in a struggling economy.
