Enhancing accessibility and lowering costs for purchasing, constructing, and leasing properties

In the Bavarian state parliament, the Green Party has put forth a comprehensive plan to make housing and construction more affordable, attractive, and sustainable. The centrepiece of their proposal is a series of reforms aimed at reducing the real estate transfer tax and introducing a new real estate tax.

Currently, the real estate transfer tax rate in Bavaria stands at 3.5 percent of the notarial purchase price. However, the Greens argue that this tax disproportionately affects first-time buyers, as a reduction in the tax rate would primarily benefit buyers of luxury properties, according to Finance Minister Albert Fücker (CSU).

To address this issue, the Greens propose the abolition of the real estate transfer tax for the first self-occupied single-family home purchase in Bavaria. This move would save a family buying a 500,000 euro house 17,500 euros.

In addition, the Greens suggest introducing a real estate tax C, similar to that in Hamburg. This tax would target long-term unused plots of land for speculative gains. The party believes that this measure would help to free up land for new construction projects, particularly within existing settlement structures, rather than on "greenfield" sites.

The Greens also advocate for a tax allowance for the first-time purchase of a single-family home at the federal level. Furthermore, they want to reduce bureaucracy in the housing industry to facilitate the conversion of other properties into residential properties.

However, their proposals have not been without criticism. Finance Minister Fücker has labelled the Greens' plan as "old hat" with "clear weaknesses in craftsmanship." Alois Rainer from the CSU party, who argued against the Green Party's proposals to lower rent prices and improve housing construction and availability in the Bavarian state parliament, has also expressed scepticism.

The Greens, however, remain steadfast in their belief that everyone has a right to housing and that owning a home can secure a good life in old age. They propose models that enable "ownership in time," such as hereditary building rights for 99 years.

Moreover, the Greens urge the need for more publicly funded housing in the rental sector. They propose that municipalities should be able to acquire apartments that have been empty for more than ten years at the market value as a last resort. The party also calls for the permanent introduction of the rent brake and the closure of loopholes, such as for furnished apartments.

Unlike other federal states, Bavaria has not increased the real estate transfer tax rate in recent years. The Greens' proposals could mark a significant shift in Bavaria's real estate market, making housing more affordable and sustainable for all.

Enhancing accessibility and lowering costs for purchasing, constructing, and leasing properties