How to motivate private investment to retrofit the existing housing stock
1. How to motivate private
investment to retrofit the
existing housing stock
Mirja Adler
KredEx
12 September 2011
2. Who is private investor for
housing stock in Estonia?
• Legal body:
– Housing association
– Housing cooperative
• Community of apartment owners
– no legal body
• In all cases all apartment owners (private
persons) are responsible for decisions and
payments
3. To motivate private investors
the purpose has to be set, is it
• Complete renovation of the buildings
• Healthy indoor climate
• Energy efficiency
• Better living environment
Or the combination of all of them - yes
5. Technical studies by Tallinn
University of Technology
Studies for 4 different building types,
including social studies about residents
attitude and expectations
• Brick
• Concrete large panel
• Wooden apartment buildings
• Newly constructed buildings
6. Estonia BPP - Paldiski 171
• Paldiski mnt 171 • Supervisory of works 7.669 €
– built in 1977 • Design 5.958 €
– typical block of • Reconstruction 389.408 €:
flats • roof – 52.325 €
– 5 storey • windows – 46.664.€
• facade – 119.566 €
– 60 apartments
• balconies – 107.929 €
– 3.144 m²
• heating system – 51.643 €
• heating metering system – 11.279 €
• Total costs per square meter
128 €
• Result: 58% energy saving
7. Financial measures
• Grants
– From state
– From municipalities
• Low interest rate loan
• Beneficiary can
combine the
measures
8. Grants and guarantee
• State grant from KredEx for:
– energy audit – 50%, max 700 €
– technical inspection – 50%, max 700 €
– building design documents - 50%, max 4 000 €
• Reconstruction grant from GIS: 15, 25 or 35%
depending on the level of refurbishment
– Grants from municipalities, for example:
Tallinn City 10% for renovation
• Credit guarantee from KredEx – if needed
10. Results so far
Loan Refurbishment grant
• Start 24.06.2009 • Start 30.09.2010
• By 31.08.2011: • By 31.08.2011:
• 218 applications/buildings
• 308 buildings
– 5,5 mln €
• Apartments 11 004 • 183 pos decisions
• Ca 730 600 m² – 4,9 mln €
– 15% 1,8 mln €
• Total 26,8 mln €
– 25% 2 mln €
• Average 88 500 € – 35% 1,1 mln €
• Saving 33,4% • Ca 452 000 m²
• Average 26 600 €
12. Information to market participants
• Press-conference in public media
• Infodays/seminars/workshops - to end
beneficiaries, builders, energy auditors, project
designers, local municipalities
• Advertisements in newspapers/magazines
• Internet (website, banners,
news, articles)
• Direct mails
• Leaflets/booklets
• Cooperation with banks
15. Conclusions
• To motivate private investors the all-round
approach is needed:
– Legal framework
– Specialist and companies available
– Arguments and support for decision making process
(studies, BPP)
– Financial support schemes – loans, grants
– Programs for awareness raising
– Campaigns to inform residents about possibilities