Berlin's Social Housing Plans at Risk of Falling Short
Berlin is facing a setback in its social housing construction plans. The city aims to build 20,000 new apartments annually by 2026, including 5,000 social security units. However, recent developments indicate that the city may fall short of its targets.
Between January and June 2023, state-owned real estate companies managed to build only 624 new social security apartments. This is significantly lower than the annual target of 5,000 units. Furthermore, as of September 1, 2023, funding for just 151 new social security apartments has been approved, raising concerns about the pace of construction.
The Senate Department for Urban Development has revised its construction forecast, expecting 1,400 fewer apartments by 2026. This revision comes amidst various challenges, including unplanned investment costs, insufficient construction capacity, and delays due to missing documents or planning law hurdles.
Berlin is at risk of missing its social security construction targets for 2023. The city needs to address the identified challenges promptly to stay on track towards its goal of providing 20,000 new apartments annually by 2026, with 5,000 of them being social security.
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