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 German Sawmill Association welcomes restart of housing construction funding
[Feb 27, 2024]

The German Sawmill and Wood Industry Association (DeSH) welcomes the revival of a funding program for the German house construction sector.

DeSH criticizes the program for lacking adequate funding and neglecting sustainable building materials.

The German federal government allocated an extra €1 billion for constructing and acquiring climate-friendly properties after the depletion of funds for the Climate-Friendly New Building program in December 2023.

The German government has reopened funding opportunities for property owners and developers, signaling a renewed push to invigorate the construction sector and promote energy-efficient and age-appropriate housing. The state bank KfW is once again accepting applications for subsidized loans aimed at fostering climate-friendly new builds, age-appropriate conversions, and cooperative housing initiatives. The previous programme was stopped by the government at the end of 2023.

The relaunch of funding programs comes at a crucial time for the German construction industry, which has been struggling with widespread order cancellations and a wave of insolvencies over the past year. Federal Building Minister Klara Geywitz emphasised the importance of these initiatives in providing a much-needed boost to the sector when announcing the re-introduction of subsidies in Berlin recently. The move is seen as a strategic response to counter the uncertainties following a Federal Constitutional Court ruling in December 2023 and to address the depletion of funds due to high demand.

Among those able to immediately benefit from the subsidy programme are those building in a climate-friendly way or to convert a property suitable for the elderly.

Source: refire-online.com