Top news stories in real estate for June 2021
Last month two big announcements were made in the real estate industry in Germany: Starting in July, more funding will be available for residential building renovation or construction that meet KfW standards; and in September, Berlin will have a referendum to vote on whether large real estate groups with more than 3000 apartments should be socialized. Read on to find out more.
More money for efficient building
In January, the "Federal Funding for Efficient Buildings" fund (BEG) was announced through the KfW bank. Starting on July 1, residential buildings are included in this funding program, meaning energy-saving measures in renovations and construction of homes will be financially supported by the government with up to 50% of funding. The amount of the subsidy will depend on the energy efficiency standard of the house. For houses with efficiency levels of 40, there will be more money available for grants. Efficiency house levels 100, 85, 70 and 55 will also be eligible for the funding. For a KfW Efficiency House 40 Plus there is a 25 percent repayment subsidy (maximum 30,000 euros). Overall, the maximum amount of eligible costs will be increased from 120,000 euros to 150,000 euros per residential unit.
Berlin referendum announced
In September, Berliners will have the chance to vote in a referendum on whether large real estate groups should be socialized in the capital. "Deutsche Wohnen & Co enteignen" (Expropriate Deutsche Wohnen & Co) received more than 359,000 signatures of the required 171,783 signatures requried for a successful referendum. The goal of "Deutsche Wohnen & Co enteignen" is to socialize real estate companies with more than 3000 apartments. Berlin's mayor, Michael Müller, has stated that such a move would not accomplish the desired result of more affordable housing: "Expropriation and all the steps that follow from it are a confrontation that does not help us - and which also does not lead to more apartments," said the SPD politician in the ZDF Morgenmagazin. "A referendum is a legitimate democratic means," he said. "But I made it clear from the beginning that I believe that expropriation is not the right way, but that we have to see in a dialogue and with strong local communities that we are slowing the rise in rents...This must be done through new construction and regulation, and there are also the appropriate instruments for this," said Müller. On September 26, Berliners can vote on whether real estate groups with more than 3000 apartments should be expropriated for billions in compensation.
News in the ZEE world
Last month our CEO Clemens Paschke spoke to Jörg Seifert in a podcast about ZIEGERT's strategy, the digitization of the real estate industry, and the "broker as the last mile". Listen here. Dr. Paschke gives exciting insights into the realignment of the ZIEGERT Group, and addresses the current difficult market situation in the age of brokerage distribution and digitization. Among other points, he notes that not only distinguished brokers, but also digital natives and creative web developers are now working in this very dynamic business field. In another podcost, our Head of Finance Consulting Olaf Grumm spoke with Corvin Tolle and business reporter Manuel Koch about financing models and widespread false assumptions about real estate financing. He answers questions such as "How can you afford a property without equity?" among other hot topics. Watch the video here.
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