Subsidized rental housing will not be cheap

The state in cooperation with private investors will support the construction of affordable rental apartments, PM Robert Fico said. He stressed that these would not be social apartments, but units provided under favorable conditions. Rents will be under a market level only if employers subsidize them; then an apartment with a market rent of €820 will be let at €600 per month. These do not have to be new apartments, investors can also buy existing units. The state can reserve 40% of the units, e.g. for nurses, doctors and teachers.

Investors WGB and Kooperativa want to provide 1,000 apartments under the state scheme and are still negotiating the terms of their contract with the state. The government has softened the conditions for investors and will also give the preferential 5% VAT rate to smaller players.

(sme.sk, dennikN.sk)