The Eindhoven municipality needs three million euros to provide more affordable housing in district E. The plan is to get 1.55 million euros from the house building stimulus programme (WBI, woningbouwimpuls) and the remaining 1.45 million euros from the sale of property at the Stationsplein Zuid.
In the original plans for district E, 107 rental homes (21%), were to consist of social housing against 403 (79%) expensive rental homes. Made possible with money from the WBI, an additional 30% of this development is to consist of medium-priced rental homes, leaving half of the market to the big earners in the city.
The original plans were made in 2017, a period in which there was less political attention for the affordability of housing. The municipality expects that the Stationsgebied Zuid will yield around 5.4 million euros.
In addition to homes, there will also be 110 to 150 ‘short stay’ homes. These are intended for expats who stay there until they find a permanent residence in the area. The short-stay homes came into view when plans to build a hotel in District E were cancelled. Not only will there be no hotel in District E, the residential towers will also be a lot lower than originally planned. The tallest residential tower will now be 140 m instead of 170 m, as was announced at the end of 2021.
This reduction is partly due to increased construction costs. Amvest itself has also suffered a significant financial loss due to the collapse of the hotel market. All things considered, it was necessary to opt for more sober plans. On the upside, it will result in more affordable housing.
Real estate developer Amvest is being compensated for the lower land price with the three million from the municipal coffers. When Amvest started the project, it seemed that 80 per cent of the homes could be built for the highest market segment. Now that this is not the case, the land on which District E is to be built will be worth about three million euros less, so that compensation is due.
Translated by: Yawar Abbas