As part of its budget planning for 2027, the German federal government has set the initial financial course for founding a state-owned housing construction company. Under the heading of acquiring an equity stake in the federal housing company for affordable housing, 320 million EUR has been earmarked in the budget, flanked by commitment appropriations of 600 million EUR. The German Property Federation (ZIA), the peak association of the German real estate industry, has signalled its fundamental readiness to support this process constructively.
However, ZIA President Iris Schöberl warned that the specific structure of the new company must now be presented as quickly as possible. To reliably achieve the targeted launch in 2027, swift and structured preparation is essential. In this context, Schöberl called on the federal government and particularly the Federal Building Minister to integrate industry expertise early and comprehensively into drafting the concept.
Cutting red tape and mobilising private capital
From the association's perspective, founding the federal housing company must be strictly combined with far-reaching regulatory relief. Construction in Germany must become fundamentally simpler and more affordable to actually achieve the target of creating more housing. The real estate sector supports all measures that strengthen the market and release additional capacity.
- —Rapid presentation of a viable concept for the planned company launch in 2027
- —Integration of regulatory simplifications to ensure simpler and more affordable construction
- —Mobilisation of private capital through targeted risk mitigation and partnerships
- —Establishment of statutory legal certainty to maintain investor confidence
The federation stresses that the federal housing company must under no circumstances compete with existing market players. Its mandate must primarily consist of facilitating investments, cushioning risks, and thereby channelling private capital into residential construction. Housing supply can only be expanded effectively through a concerted interaction between state seed capital and private funding.
Urgent demand for an investment protection act
According to the association, a central cornerstone for reliable framework conditions is the adoption of the announced investment protection act. This legislation is overdue to safeguard investments in the housing market over the long term. In this regard, the ZIA demands a legally binding guarantee that mandates immediate compensation at full market value in the event of any compulsory socialisation.
Without this fundamental legal certainty, the confidence of both institutional and private investors risks remaining severely impaired. The association firmly believes that reliable framework conditions and unconditional protection of invested capital form the fundamental prerequisite for anchoring capital in German residential construction permanently.
