German housing industry demands three-billion-euro programme

According to the dpa, the German housing industry is demanding a five-year funding programme for the construction of 100,000 new homes.

The idea of the GdW, the German Federation of Housing and Property Companies, is that this will be financed by the federal and state governments, will comprise three billion euros and thus make a contribution to countering the rent price explosion in many German cities.

The target of creating the new homes which are necessary is miles away, said the federation’s president Axel Gedaschko.

About 320,000 new homes per year would be needed, according to the former Hamburg Minister of Economics and CDU politician. However, only 245,000 homes were completed in the whole of Germany in 2014, according to the GdW.

Building costs in Germany are so high these days that rented appartments built without public funding only pay off for the builder from a price of eleven to twelve euros per square metre. Tenants from lower income groups would not be able to afford that.