Record demand for housing construction bonus 2023: Financial expert sees building savings contracts as an attractive option for real estate financing

Record demand for housing construction bonus 2023: Financial expert sees building savings contracts as an attractive option for real estate financing

According to the Federal Ministry of Construction, there was record demand for the housing construction bonus in 2023, with state subsidies for building savings contracts amounting to 203 million euros being accessed. This shows that the desire to own one's own property is still great, especially against the background of increased interest rates, which make building savings contracts more attractive. The housing bonus allows married couples to claim a maximum of 140 euros annually and single people a maximum of 70 euros. The majority of the money flows into building savings contracts, which offer low fixed interest rates for real estate financing. Building Minister Klara Geywitz (SPD) emphasized that this was a sign that many people still wanted to have their own house or condominium.

According to a report by amp2.wiwo.de,

Experts expect that the record demand for the housing bonus will also have an impact on the real estate market. Due to the increasing number of government subsidies drawn up for building savings contracts, the overall demand for real estate could increase. Especially in combination with the attractive conditions of building savings contracts, which offer low fixed interest rates, more people could dare to take the step into their own four walls. This could lead to an increase in property prices as demand could exceed supply. In addition, construction activities could also increase to meet increased demand. Overall, it is expected that record demand for the housing bonus will further stimulate the real estate market and potentially lead to price increases.