Funding for home construction: now up to 1,000 euros per square meter!

Funding for home construction: now up to 1,000 euros per square meter!

The funding loans for the construction or purchase of a home have experienced a significant increase to 900 euros per square meter, which corresponds to a plus of 200 euros compared to before. This new program aims in particular on builders who work on a smaller reason, i.e. less than 750 square meters. Up to 1,000 euros per square meter can be requested here. The state government, led by Gaby Schauning (SPÖ), has also set a term of 30 years for these favorable loans. The first 20 years are burdened with only 0.5 percent interest, while the following ten years provide an interest rate of 1.5 percent, as Klick-kaernten.at reports.

Postbank has documented a drastic decline in property prices in its 2024 residential atlas. In 2023, the purchase prices for condominiums in Germany fell significantly in most regions. Inflation-adjusted, the decline is an average of 10.1 percent, whereby the "Big 7" metropolises are most affected: here prices were real by 12.7 percent. This development was triggered by increasing mortgage interests, an uncertain economic situation and decreasing demand. Manuel Beermann from Postbank explains that the sunken prices were to be expected due to the weaker demand and offers hope for a future price adjustment, such as Immovation-blog.de emphasized. Despite the decline, prices in cities such as Munich or Hamburg remain at a high level.

In addition, it is mentioned that adjustments in funding policy for living space adjustment and focus on barrier -free construction will in future provide up to 20,000 euros for conversions in order to improve the quality of life for people with physical restrictions. An aspect that thus fits an overall picture of the current situation on the housing market in Austria and Germany with the general decline in real estate prices.