The municipal housing industry is expecting a slump in new construction projects in Saxony this year and next - including in social housing. "This is dramatic because these are often projects that were intended for the small purse," said Alexander Müller, Director of the Association of the Housing and Real Estate Industry (vdw), in Dresden on Thursday. In a survey, member companies in Saxony stated that around 85 percent of the new construction projects planned for this year could no longer be realized in the current situation. Around 80 percent of the companies stated that they would not be able to build any new apartments in 2024.
"This also includes social housing construction, where we will almost have a cessation of activities," said Müller. The vdw Saxony comprises 127 mainly municipal housing companies, which manage around 303,000 apartments, around a fifth of the rental apartments in Saxony. The association also anticipates a decline in residential construction among its members in 2025. For comparison: in 2022, around 164 million euros were invested in new construction by the municipal housing companies in the Free State.
