HOUSING AND FINANCING
The policy of Naalakkersuisut (The Government of Greenland) is to encourage private house building. In this context the housing reform encourages investment in privately owned dwellings, e.g. shared ownership properties, owner-occupied dwellings, and single-family homes.
Municipal Rented Housing
The construction of municipal rented housing is financed 100 per cent by the government. Naalakkersuisut grants a fixed subsidy per square metre. The remainder of the construction cost is financed by the municipalities.
Table 1
Grants to House Building
Note: The figures for 2009 and 2010 are taken from the budget.
Notes: 1) Subsidies to house building in Nuuk.
Source: The Ministry of Housing, Infrastructure, and Transport (IAAN)
Table 2
Increases in the Number of Dwellings
|
Kommuner |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
|
Total |
177 |
229 |
230 |
330 |
264 |
226 |
232 |
196 |
235 |
381 |
369 |
274 |
|
Nanortalik |
12 |
9 |
2 |
17 |
2 |
3 |
10 |
- |
- |
12 |
3 |
24 |
|
Qaqortoq |
3 |
4 |
4 |
17 |
12 |
9 |
13 |
26 |
19 |
40 |
15 |
13 |
|
Narsaq |
- |
25 |
3 |
2 |
5 |
4 |
1 |
- |
8 |
3 |
- |
9 |
|
Paamiut |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
8 |
|
Nuuk |
101 |
6 |
91 |
230 |
141 |
102 |
113 |
91 |
91 |
192 |
161 |
136 |
|
Maniitsoq |
6 |
36 |
4 |
14 |
8 |
2 |
11 |
1 |
- |
2 |
3 |
4 |
|
Sisimiut |
1 |
56 |
37 |
3 |
13 |
34 |
14 |
9 |
49 |
4 |
121 |
17 |
|
Kangaatsiaq |
1 |
- |
7 |
1 |
4 |
9 |
3 |
1 |
1 |
- |
8 |
- |
|
Aasiaat |
9 |
2 |
30 |
- |
32 |
3 |
6 |
8 |
5 |
2 |
1 |
9 |
|
Qasigiannguit |
5 |
- |
1 |
- |
- |
2 |
- |
- |
- |
- |
- |
- |
|
Ilulissat |
11 |
39 |
12 |
22 |
21 |
21 |
21 |
25 |
32 |
58 |
8 |
28 |
|
Qeqertarsuaq |
- |
8 |
7 |
- |
1 |
- |
- |
12 |
3 |
11 |
- |
2 |
|
Uummannaq |
14 |
17 |
23 |
3 |
16 |
5 |
4 |
4 |
3 |
6 |
4 |
- |
|
Upernavik |
10 |
21 |
1 |
9 |
3 |
10 |
15 |
2 |
4 |
28 |
3 |
20 |
|
Qaanaaq |
- |
1 |
6 |
5 |
1 |
2 |
3 |
2 |
- |
1 |
3 |
3 |
|
Ammassalik |
3 |
5 |
2 |
3 |
3 |
18 |
18 |
15 |
16 |
22 |
39 |
1 |
|
Illoqqortoormiut |
1 |
- |
- |
4 |
2 |
2 |
- |
- |
4 |
|
- |
- |
Note: Corrections in the number of dwellings in the "unknown" category and new reports from the municipalities mean that the figures may to a lesser extent differ from previously published figures.
Source: Statistics Greenland
Shared Ownership Properties
Naalakkersuisut and the municipalities grant loans which are free of interest and amortization of up to 66,66 per cent of the total eligible construction cost of the shared ownership property. The members of the housing co-operative contribute at least 7 per cent of the construction costs. The remaining 26,34 per cent are funded by the housing co-operative via bank or mortgage loans. It is possible to apply for subsidies for up to 105 square metres, the construction cost being at the maximum DKK 15.000 per square metre.
The Rent Allowance Scheme
The Rent Allowance Scheme, introduced in 1959, was changed in 2007 so that loans are no longer provided for the construction of new dwellings. However, a borrower with a taxable annual household income of less than DKK 180.000 in two consecutive years may apply for conversion of repayments due and remaining debt so that these are made free of interest and amortization.
Medbyggerhuse (houses part of which the owner builds himself)
The scheme for self-built houses was revised in 2007 so that the system now only applies to "medbyggerhuse". The builder's contribution is dependent on his income so that builders with higher incomes pay a relatively higher contribution.
Moreover, a builder can apply for a grant to receive instruction and assistance from a local craftsman to build the house. The scheme is administered by the housing association INI Ltd.
The 20-20-60 Housing Finance Scheme (Formerly 10-40-50)
Naalakkersuisut and the municipalities can grant loans up to 40 per cent of the construction costs of single-family houses. The builder must provide funding of the remaining 60 per cent of construction costs, typically via mortgage or bank loans.
From Tenant to Owner
Tenants of government single- and multi-family houses may seek ownership of the dwelling. The purchase price is set at market value.
Construction Without Public Subsidies
Construction without public subsidies is not so widespread because private parties must finance and / or take short-term bank loans. Since 1985, Danish mortgage institutions have been able to provide mortgage loans in Greenland.
Link:
Read more about housing and financing at www.naalakkersuisut.gl