Residential real estate: State funding necessary for renovations?

Residential real estate: State funding necessary for renovations?

Acquiring home ownership is becoming increasingly difficult due to high interest rates, renovation costs and a shortage of skilled workers. Experts emphasize that unrenovated properties dominate the market as many potential buyers cannot bear the rising costs. Florian Rentsch, CEO of the Association of Sparda Banks, emphasizes that government incentives such as depreciation options or direct tax breaks are necessary to promote the renovation of real estate and relieve buyers.

Rentsch criticizes the political situation in Germany by pointing out missed savings targets for building renovations and a lack of funding. He calls for greater support to be given to the energy-efficient renovation of existing properties and to reduce the costs of purchasing properties. The federal government's current measures are creating uncertainty among investors, which is inhibiting housing construction and driving up rental prices further.

The forecast worsening of the housing shortage is a cause for concern as political measures lead to an unattractive investment climate. Rentsch warns that if no countermeasures are taken, housing will become a social challenge in the coming years. It is essential that society acts to ensure the affordability of housing and avoid social unrest.