Let's Talk About Hubertz's Plan for Affordable Housing: State Guarantees and Simplified Construction
Minister Hubertz to Secure Government Backing for New Housing Projects Construction - Government assurance sought by Construction Minister Hubertz for fresh residential projects
The Federal Minister of Housing, Hubertz, has come up with a plan to shake up the housing market. Smaller companies in the sector are struggling with a lack of equity, and they're paying high interest rates for real estate loans. But what if the government stepped in and took on some of that risk? That's exactly what Hubertz is proposing with state guarantees!
"I'm talking about providing guarantees or investing in an equity fund to strengthen these companies," Hubertz explains. "This can help lower interest rates and make it cheaper to build apartments."
And Hubertz isn't stopping there. She's also championing the "Building Type E," a simple and experimental approach to construction that could revolutionize the industry. This type of building is more flexible, allowing companies to depart from conventional standards without compromising safety or quality.
"The Building Type E will be an important project, and I've been in talks with the new Minister of Justice, Stefanie Hubig, about making it happen," Hubertz says. "With simplicity and experimentation, we can reduce construction costs and deliver more affordable housing."
The current market can barely produce apartments that cost less than 15 euros per square meter in cold rent due to high costs. But Hubertz has set her sights on making this a reality. "My goal is to make it possible for new construction to cost under 15 euros per square meter, and that's written in the coalition agreement."
The housing industry is a massive economic driver, and Hubertz believes it could help revitalize the economy, especially during a downturn. "Around half of all investments are construction investments," she says. "Construction can serve as an economic engine."
Of course, there's more to the story. There's talk of financing mechanisms, innovative building methods, and regulatory hurdles. But at its core, Hubertz's plan is about making housing more affordable for everyone. And that's a goal we can all get behind!
"The Commission, in consultation on the draft directive on the protection of workers from ionizing radiation, might also have a role in ensuring the safety of construction workers involved in the implementation of Hubertz's affordable housing plan, particularly with the introduction of the experimental Building Type E."
"Moreover, the investment in equity funds by the government, as proposed by Hubertz, could potentially attract the finance sector to invest in the housing industry, thereby aiding smaller businesses and real-estate companies in their endeavor to build affordable housing."
"As Hubertz aims to make new construction cost under 15 euros per square meter, this could lead to opportunities for businesses and investors to create profitable ventures in the housing industry, contributing significantly to the national economy and stimulating economic growth."
