No city has experienced in recent years such as Munich a such price increase for purchase and rental prices. St. Gallen, 11.12.2013. Now the aim is to build affordable apartments for rent. The Bavarian capital sold part of their land in future only to investors who build affordable apartments. Especially for people with middle income, it will benefit is always harder to find these people should be assigned by the project an affordable apartment.
The concept KMB, so conceptual flats introduces a change in the Munich real estate market: investors who buy municipal land, be obliged to build affordable apartments for rent. The area can be bought at a reasonable price. To do this, 30 percent of municipal land to be written in the future. This is the situation of normal earners”improved, with their income just above the upper limits of the funding programmes are and get no help. For these people it tips up Location and many have existential fears. Because extremely increased property prices affect increasingly also the rents. About 16 euros per square meter to pay tenant rent for a new apartment. Extrapolating to the utilities, so heating and other operating costs, tenant for an 80-square meter apartment about pay 1500 euros a month.
No cheap apartments for rent can occur during this high rent levels. So, the Munich City Council gets into Zugzwang: now the municipal area are sold the highest bidder, rather than to the market value. 30 Percent of the urban areas are used for the conceptual flats, 50 percent are reserved for subsidized housing. The remaining 20% go without ties to free funded housing”, explains Michael Oehme, consultant at the St. Gallener CapitalPR AG. He thinks that this approach is groundbreaking. Buyer of this so-called SMEs areas”must comply with several conditions. In return, receive She plots to a set value, which is significantly lower than in a conventional tendering. The key requirement: The construction of rental housing, which may be divided for a long period of time and not converted into condos. Also, the landlord may claim no captive termination. The first project starts with a 40-year commitment period. However, the concept is criticized by private housing companies: they fear a loss of profit for the municipal housing companies.