Qeqqata Municipality’s rental housing stock faces a maintenance shortfall of 356 million kroner. The rent increase that lawmakers have considered covers only about 1 million per year of an annual need of 28 million.
The roofs, windows, water pipes, and stairs in Qeqqata Kommunia’s rental housing units in Sisimiut and Maniitsoq are deteriorating faster than funds are available to repair them.
This is evident from the materials for the municipal council meeting on September 24. In these materials, the housing management company INI A/S estimates the maintenance backlog at approximately 356.4 million kroner. To date, only 192.2 million kroner has been set aside out of a total need of 548.7 million kroner over the next ten years.
If the backlog is to be cleared over a period of ten years, it will require approximately 28.2 million kroner per year. According to the case summary, this is essentially equivalent to a 24 percent rent increase. In that case, the rent would rise to 456 kroner per square meter per year, compared to 233 kroner today.
Increase Cut Back
That is far from what is currently on the table. INI originally proposed raising the rent by 3.0 percent starting in 2027. However, the municipality determined that the increase should follow the general price and wage adjustment, and the proposal was therefore reduced to 2.2 percent.
A 2.2 percent increase would provide only about 1 million kroner extra per year for the 939 housing units in the four complexes. For tenants, this means an additional 74 to 118 kroner per month, depending on the type and size of the unit.
On September 15, the Finance Committee recommended the 2.2 percent increase, citing the importance of ongoing housing renovations. [CHECK MINUTES: City Council decision of September 24]
Auditor Issues Warning
The municipality’s auditor, BDO, has reviewed the housing departments’ financial statements for 2025 and found no irregularities. However, BDO points out that the funds allocated for maintenance are insufficient.
“Based on the current level of funds set aside, there are only enough resources to begin the most essential work,” BDO writes in its note on planned and periodic maintenance.
According to the case summary, this could mean that rent increases will be necessary starting in 2027 and beyond.
Vacant Homes and High Bills
INI warns of the consequences if maintenance is neglected. More parts of the building will deteriorate, and some rental units may eventually become uninhabitable. This could lead to more vacant homes, more complaints, and buildings that have to be demolished sooner than usual.
In the worst-case scenario, a housing complex could end up in the red, leaving it without the funds to cover fixed expenses such as insurance and daily waste collection. In that case, the bill falls to the municipality, which is required by law to provide subsidies to housing complexes in financial distress.
INI also points out that if rent is not adjusted steadily in line with inflation, a single, very large increase may eventually be necessary, which could lead to dissatisfaction among tenants.
Long waiting list
At the same time, there is a housing shortage. According to INI’s figures as of June 30, 456 people are on the waiting list for housing in Sisimiut and 158 in Maniitsoq.
In 2027, plans include facade renovations in Tuapannguanut and new windows in several apartment buildings in Sisimiut. In Maniitsoq, the replacement of windows and balcony doors will continue, and water pipes will be replaced in several buildings.
