Real estate: New building subsidies start in March

From March, builders should again be able to submit applications for new building subsidies based on the new criteria.

Real estate: New building subsidies start in March

From March, builders should again be able to submit applications for new building subsidies based on the new criteria. A spokeswoman for the Federal Ministry of Construction confirmed the date of the German Press Agency. The ministry announced the new funding program last year, but has not yet given a final date.

This Wednesday there should be more details, said the spokeswoman for the Ministry of Construction.

Federal Building Minister Klara Geywitz had already announced new property promotion for families. Families with an annual income of up to 60,000 euros plus 10,000 euros per child are entitled, as the SPD politician recently told the “Welt am Sonntag”. Accordingly, 350 million euros a year are available for the program of the state development bank KfW with low-interest loans. With an interest rate reduction, the leverage is better than with annual direct payments after the purchase, Geywitz had argued.

Criticism of funding volume

The total volume for new building subsidies will be 1.1 billion euros in the future, linked to high standards for energy-efficient construction. In addition to promoting climate-friendly homes, 750 million euros are intended for all other applicants, such as housing companies and individuals. It should be possible to submit these applications to KfW from March. Above all, the refurbishment of existing buildings should be subsidised, since according to the Federal Ministry of Economics and Technology the climate protection effect is much greater here than in new buildings.

Last year, the old funding programs were stopped after a flood of applications. As a result, the federal government announced a fundamentally revised new construction subsidy for 2023.

The construction industry reacted disappointed on Tuesday. "The amount of funding is so low that the administrative effort is probably not even worth it," said Tim-Oliver Müller, general manager of the German Construction Industry Association. The federal government is letting tenants down.

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