Despite the acute housing shortage, Finance Minister Lars Klingbeil (SPD) is reportedly filling budgetary gaps with billions from the federal real estate institution. This is according to “Spiegel”, citing budget documents. According to the reports, the Federal Agency for Real Estate Tasks (BImA) is set to transfer 1.5 billion euros to the federal budget next year, which is 150 million euros more than it did this year.
The financial plans reveal that the agency is spending significantly small amounts on renovating empty apartments, modernizing others, or constructing new ones. The opposition suspects this is because the BImA must pass these billions to the federal government. Green politician Lisa Paus told “Spiegel”, “Those who promise affordable housing do not sell off the foundation on which it is built.” The BImA possesses everything needed for affordable housing: land, approximately 38,400 owned apartments, and a clear mandate to build. However, instead of allowing the BImA to build, the federal government is taking away 1.5 billion euros from it.
A spokesperson for the Ministry of Building declined to comment on the ongoing budget negotiations when contacted by “Spiegel”. The Ministry of Finance stated that the corresponding transfer was decided by the Federal Cabinet as part of the governmental draft for 2027. It is true, the Ministry of Finance indicated, that the BImA will be able to undertake fewer new investments as a result. However, the BImA’s capacities are already fully utilized, especially since the agency is intensifying construction activities with the Ministry of Defence to prepare for the expected increase in personnel within the armed forces. At the same time, the Ministry of Finance announced that significantly more is being invested in affordable housing construction through the special fund than in the past.
