Germany’s latest spending package will have a mixed impact on its struggling housing market. Looser debt rules may lead to higher financing costs due to government borrowing, which could slow construction activity. However, unlocking funds for energy-efficient upgrades to existing homes could boost investments and stimulate growth. According to Vonovia CEO Rolf Buch, the package’s effects are likely to be contradictory, as it aims to address both affordability and sustainability concerns in housing.
Source: https://www.bloomberg.com/news/articles/2025-03-19/german-spending-plan-adds-to-housing-uncertainty-vonovia-says