Housing industry criticizes abandonment of demolition programme

The Saxon housing industry is criticizing the planned abandonment of a state funding programme for the demolition of dilapidated residential buildings. The Ministry of Infrastructure and Regional Development announced that no more funds had been earmarked for the "Residential Building Demolition" program in the 2025/2026 double budget.

Head of association speaks of fatal signal

"This short-term decision sends a fatal signal," said Mirjam Philipp, head of the Association of Saxon Housing Cooperatives. Instead of reliable and predictable framework conditions, there is once again uncertainty. In rural areas in particular, demolition is still urgently needed.

Requirement for demolition at 5,000 apartments by 2030

Alexander Müller, Director of the Association of the Housing and Real Estate Industry in Saxony, also expressed his disappointment: "Our member companies - housing cooperatives and municipal housing companies - have reported a demolition requirement of up to 5,000 apartments by 2030."

The fact that the demolition program was not fully exhausted last year is not a sign of a lack of interest, said Müller. "Around 1.75 million euros of the three million euros made available were called up, which meant that more than 300 apartments could be demolished." In view of the late start of the program in mid-2024, this is a "remarkably high call-off rate".

Saxony only increased the program last year

Saxony only modified the program in the summer of 2024. The costs for demolition were subsidized with up to 100 euros per square meter. This doubled the previous funding for local authority demolition projects.