Real Estate
German Spending Plan Adds to Housing Uncertainty, Vonovia Says
- Relaxation of debt rules mean financing costs are on the rise
- New government must tackle construction costs, CEO Buch said
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Germany’s landmark spending package will have mixed effects on the country’s battered housing market, according to Vonovia SE, Europe’s largest landlord.
Looser debt rules will trigger higher financing costs as the market braces for hundreds of billions of euros in government borrowing, which could weigh on construction activity. On the other side, unlocking funds for energy-efficient upgrades to existing housing stock could boost investments, Vonovia chief executive Rolf Buch said in an earnings call on Wednesday.