Berlin housing subsidies 2015: Senate triples funding to 192 million euros

Subsidies for new social housing in Berlin will triple by 2017. Instead of the previous 64 million euros, 192 million euros per year will be available. According to Senator for Urban Development Andreas Geisel (SPD), this should fund around 3,000 new social housing units annually.

Faster permits through new legislation

Alongside the increased funding, a planned construction acceleration law is set to speed up housing development in Berlin across the board. The Senate intends to remove procedural obstacles at state level. A draft bill was submitted for review this week.

The planned changes specifically affect the cemetery law, the monument protection law, the state forest law, the tree protection ordinance and the building procedures ordinance. For instance, residential construction on the fringes of decommissioned cemeteries is to be made easier. The monument protection law will introduce a reporting requirement for housing-related projects to speed up coordination with the Senate administration.

Federal funding adds to the package

At the federal level, Minister Barbara Hendricks has pledged to double funding for social housing. Berlin intends to invest these funds immediately, including for permanent housing for refugees who will remain in the city for the foreseeable future.

What this means for the Berlin market

The increase in subsidies is a response to the strained market situation. Sustained population growth is driving demand, particularly in central boroughs such as Mitte. Even before the funding increase, the Senate had approved 53 new positions for planning and permit departments across the boroughs.

For private developers and investors, conditions are improving: shorter approval times reduce financial uncertainty, and the additional social housing is intended to ease pressure on the market as a whole.