Affordable housing for

Middle Franconia

Hersbruck/Munich/Erlangen, January 11, 2024

BayernHeim GmbH, a company of the Free State of Bavaria, has entered into a construction project for 62 rental apartments in Hersbruck, Franconia, by real estate developer GBI Group. Work on the four buildings with a total of 4,430 square meters of living space and 2- to 4-room apartments will start this spring. Thanks to the income-oriented subsidy (EOF) model, the basic rent - depending on the income group - will be between 4.90 euros and 6.90 euros per square meter. 

Bavaria's Construction Minister Christian Bernreiter emphasizes the importance of BayernHeim in the current situation: "BayernHeim is making a significant contribution to alleviating the housing shortage. This is also the case here in Hersbruck. In addition, the Free State is countering the current housing crisis with measures such as the Bavarian Housing Booster, the Bayern loan and the construction stimulus program."

Ralph Büchele, Managing Director of BayernHeim GmbH, adds: "We are pleased to be involved in ensuring that affordable housing is also created in Central Franconia in these challenging times. As a long-term portfolio holder and landlord, we are actively counteracting the tight housing market. And that throughout Bavaria."  

The project in Hersbruck is being built in the "Raiffeisenstraße-Süd" development area using sustainable timber frame construction, and even the ceilings and elevator shafts are made of wood. As a result, 1,441 tons of biogenic carbon will be absorbed in the Hersbruck construction project instead of being released into the environment. In addition, the roof areas will be made available to the regional energy and water supplier HEWA for the installation of PV systems and for feeding the electricity generated into the energy grid. This will meet the requirements of the KfW 40 criteria and reduce the ecological footprint of future residents.

"In Bavaria, the attractive subsidies through grants and favorable loans as well as the activities of BayernHeim offer us the best conditions for creating affordable living space," explains Simon Behr, Chief Commercial Officer of the GBI Group: "Hersbruck is quickly connected to the metropolis of Nuremberg thanks to the direct S-Bahn connection. This makes the location highly sought-after and ensures a tight housing market."

In addition to privately financed residential construction, the GBI Group develops subsidized housing projects not only in Bavaria, but also in Baden-Württemberg, Hamburg, Lower Saxony, Hesse and North Rhine-Westphalia. GBI has developed a total of more than 1,500 subsidized apartments since 2016 and sold them to institutional buyers, such as insurance companies, pension funds or state-owned companies, as in the current case to BayernHeim GmbH. "We are a pioneer in the implementation of subsidized housing projects and are always pleased to see effective subsidy models, such as here in Bavaria," says Simon Behr.

BayernHeim GmbH is one of three state housing associations and creates affordable rental housing throughout Bavaria. Founded in 2018, BayernHeim has so far launched a total of over 7,000 apartments.