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Two-thirds rule for rezoning for developers

Due to changes in the building code, its mandatory that two-thirds of the land, which will be dedicated as residential area, needs to be used as subsidized apartments. Just one third of the living space can be financed independently. This applies to any rededication with a floor space of 5,000 square meters. This should significantly increase the rate of affordable housing. In this case, affordable housing means a net rent of about 5 euros per square meter. The above-ground land costs are limited to 188 euros per square meter.

This is regulated by the new dedication category "subsidized housing", which is anchored in the building code amendment. This should not be a problem for all new purchases, as the land prices are theoretically kept low. However, this does not apply to expected development sites, which have already been acquired by the developers at high prices. With the new allocation key, every square meter of privately financed housing would be burdened with more than € 1,300 basic cost per square meter. In addition to the currently high construction costs, affordable housing seems to be a long way off.