Munich (dpa/lby) - The Bavarian housing companies are canceling the construction of 2000 new apartments in the coming year due to high costs and uncertain funding. That is almost a fifth (19 percent) of the new construction projects originally planned for the next two years, as the Association of Bavarian Housing Companies announced on Wednesday. In addition, 1500 modernizations have also been put on hold.
Association director Hans Maier spoke of a "toxic mixture" for the housing industry. "Expensive construction costs, rising interest rates and insufficient subsidies for housing construction are leading to a sharp drop in investment." The figures are based on an internal association survey among the 495 member companies, mostly cooperatives and municipal companies.
Housing construction is currently not economically feasible, especially for the socially oriented members of the association with their low rents, said Maier. Accordingly, 41 percent of the companies surveyed want to reduce their investments in the coming year.
According to Maier, in addition to social housing, the energy transition in the building sector will also be affected. "The canceled 1,500 refurbishment measures are almost exclusively energy-related refurbishment projects to reduce CO2 emissions," said the association director.
