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Greater commitment to urban development and renovation needed in Germany
July 12, 2012
The German Federal Cabinet adopted its 2013 budget in late June which provides for urban development at the same level at in 2012—a commitment of 455 million euros. "This is a first signal for the cities and the housing industry in Germany, but the total is still well below the actually required level of at least 535 million euros from the year 2010," said Axel Gedaschko, Chairman of BSI, an umbrella federation of real estate industry groups which includes IVD Bundesverband
, the leading brokerage association and ICREA member.
Further, there is uncertainty on the future of social housing programs. According to the agreement on the fiscal pact between the federal and state, funding decisions have been taken only for the coming autumn. Gedaschko called on the Prime Minister and the federal government to agree to a continuation of compensation payments beyond 2013 in a reasonable amount. The BSI calls on state leaders to enter into a voluntary commitment to continue earmarking investments. This would mean that the funds can be earmarked exclusively for use in the future for social housing programs and for finance related tasks.