Financial crisis in the construction industry: KfW stops funding programs - what that means for builders.

Financial crisis in the construction industry: KfW stops funding programs - what that means for builders.

According to a report by www.br.de,

The construction industry in Germany is in crisis and is affected by various problems such as high material costs, increased interest rates and the shutdown imposed by Federal Finance Minister Lindner. These problems have led to a temporary halt to KfW's funding programs.

The state development bank KfW has put four funding programs for housing and construction on hold for the time being, citing the budget freeze. This is expected to lead to a decline in investment in the construction sector as builders and investors rely on the financing commitments. In addition, the housing shortage in Germany could be further exacerbated as the programs for cooperative housing support and energy-efficient urban renovation have been temporarily suspended.

However, Federal Construction Minister Klara Geywitz has stated that funding for new buildings is secured this year and that over 300 million euros will be made available for climate-friendly new buildings and family support. This could help mitigate at least some of the economic impact of the funding freeze.

Overall, the future of the construction industry in Germany remains uncertain, especially with a view to 2024. The government's decisions regarding future construction funding will have a significant impact on the market and the financial sector. It remains to be seen how the situation will develop in the coming years.