Climate interest rates, i.e. interest rates that could incorporate housing loan subsidies as well as business loans for housing purposes, for homes and buildings that would deal with climate change, seem to be the subject of discussion among the competent bodies.
The reasons are many and mainly the fact that the real estate market moves basically with its old and aging stock.
The cost to build a property has increased close to 25% compared to 15 years earlier for two reasons:
One is related to inflation and the second to the requirements of the new urban planning regulation that makes buildings much more expensive.
Statistics record this reality which needs to be addressed.
Building permits fell to 4,000 during the crisis compared to approximately 30,000 before the crisis. In 2022 building permits recovered only part of what they have lost and reached approximately 9,000.
Banking officials noted that the matter has not yet matured since it is not clear whether it will only concern new permits or investments in houses that have been built with older permits. This would raise questions as to how it will be possible to exclude buildings that have already received subsidies for reconstruction.
Nevertheless, the negative credit expansion in the last three months, which is expected to continue as interest rates will remain at these levels, has begun to strongly concern the banks and the financial staff, which have started to examine various solutions.
