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From Thilo Alexe
The rise in construction prices and interest rates, high standards and a reluctance to place orders: The construction industry, says Saxony's Regional Development Minister Thomas Schmidt, is in a "very, very difficult situation". 42 percent of companies in Berlin, Brandenburg, Saxony and Saxony-Anhalt have a negative assessment of the business situation, almost twice as many as a year ago, emphasizes the CDU politician, referring to data from the Eastern Construction Industry Association.
Saxony wants to help counteract this trend and not just cool down the overheated housing market in the city centers. The Free State is providing an additional 73 million euros for the construction of apartments this year. "The increased funding is helping to ensure that more can be built again," says Schmidt. He laments the high construction costs and warns that building activity could come to a standstill. The minister fears a kind of corona effect, as in the catering industry: once skilled workers are gone, it will be even more difficult for construction companies to recruit staff.
But how and where will the money go? Almost 187 million euros are available this year in Saxony for the creation of so-called occupancy-based housing, i.e. social housing. Compared to the funds approved last year, this represents an increase of 47 million euros. The money comes from the federal and state governments, which have increased co-financing from 30 to 40 percent. This will be used to finance the construction of new social housing in the cities of Dresden and Leipzig.
In addition, a state subsidy can be used to support the refurbishment of housing that is then rented out as social housing. Anyone wishing to move in requires a so-called Wohnberechtigungsschein.
A second focus is on promoting home ownership. The state government is providing 105 million euros this year - around a quarter more than was approved in 2023. The funds will go to families who want to build a house or buy an apartment. Depending on the number of children, loans are offered with an interest rate of less than one percent and a term of 25 years. Since interest rates have risen, demand has increased, says Schmidt. Last year, around 800 families took advantage of this support.
Schmidt announces innovations for the promotion of home ownership in rural areas. From April, households outside the centers of Dresden, Leipzig and Chemnitz without children can also receive support for the construction or purchase of residential property. This also applies to the renovation and extension of apartments and houses. In these cases too, the support is provided in the form of long-term loans for the owners with comparatively low interest rates.
Schmidt talks about wanting to provide impetus for the construction industry. They are intended to help counteract uncertainty among building owners and in the economy. As expected, this is going down well in the construction industry. Andreas Brzezinski, Managing Director of the Saxon Trade Association, emphasizes: "Anything that helps to ease the persistently complicated situation in the construction and housing industry is to be welcomed."
CDU member of state parliament Ingo Flemming expects funds to be drawn down quickly. This will support the order situation in the Saxon construction industry. Green MP Thomas Löser speaks of good news. His party's concern is the use of the existing housing stock. The "Young buys old" program has so far helped around 400 families to "revive a house with history".
