Germany plans to introduce tax breaks for housing construction over the next three years, to boost housing demand due to a large influx of migrants to avoid housing shortages on the market, the finance minister said on Thursday.

The German government expects around one million asylum seekers this year, and politicians are under pressure to accommodate and integrate so many migrants.

Barbara Hendricks, in charge of housing construction, estimated that every year will be needed for around 350.000 apartments, but this year will only be built 245.000. Landlord Association DMB has announced that Germany, which is around 40 million homes, needs 800.000 apartments.

In a letter sent to Hendricks, Finance Minister Wolfgang Schaeuble proposes to rule on new apartment owners to allow 10 to pay a tax on the tax. These incentives would be limited to areas with a shortage of housing and would only apply to apartments built or purchased from 2016. to 1018.

The German construction industry benefits from increased government spending on refugees. According to the latest Ifo survey, the business climate in the construction sector is at the highest level since the unification of Germany.

(Hina)