67 new apartments in Saarlouis: hope for affordable living space!

67 new apartments in Saarlouis: hope for affordable living space!

A new housing project is being built on Husarenweg in Saarlouis that will create 67 urgently needed, affordable apartments. Knut Kempeni, Managing Director of GBS, announced the continuation of this project, which is being pushed forward despite significant challenges caused by the corona pandemic and the war in Ukraine. These crises had previously delayed construction plans as rising construction costs and interest rates necessitated a temporary halt to the project. A positive turnaround came with a favorable interest rate at the beginning of the year, which enabled the construction project to be restarted. According to the Saarbrücker Zeitung, a first construction phase with four residential buildings, which includes 40 barrier-free residential units, was completed between 2018 and 2020.

The need for affordable housing is particularly urgent. In Germany, the number of completed social housing units has been falling for years, which further worsens the situation for citizens seeking payment. Bundesbaublatt reports that between 2002 and 2021 the number of social housing fell from 2.6 million to just 1.09 million. The decline is an alarming sign for the housing industry, which remains under pressure, particularly from rising construction costs and required investment.

Current challenges in housing construction

The corona pandemic and the war in Ukraine have significantly affected the business climate in the socially oriented housing industry. According to Bundesbaublatt, a decline in total investment in residential construction is forecast for 2022 by 5.7% to 19.3 billion euros, while new construction investments will fall by 9.2%. In the previous year, a 10% decline in completed apartments was noted, which reduced the number to around 29,000. The lowest figure since 2018, with only around 26,000 units manufactured, is expected for 2022.

In this context, Axel Gedaschko, President of the GdW, emphasizes the urgency of government support to cushion the exploding energy prices, which are burdening both tenants and housing companies. In May 2022, the business climate in the real estate and housing sector reached a historic low of -2.7. Despite slightly rising expectations in June, the situation remains tense for many housing companies, resulting in 70.7% of them planning to abandon or postpone new construction projects.

Future prospects and solution strategies

In order to meet the challenges, Gedaschko calls for comprehensive solution strategies that include fewer regulatory requirements, more investments and effective funding. The net rent for GdW companies is currently 6.09 euros per square meter, which is below the national average of 7.18 euros, but still represents a challenge for many households, especially in view of the impending gas shortage.

In summary, the project in Saarlouis, which is intended to create a large number of new, affordable apartments, shows that despite the current challenges in housing construction, positive steps can also be taken. However, the required support at the political level remains essential in order to stabilize housing construction in the long term and to offer citizens secure housing.