Unleashing the Building Boom: What's in Store with the Building Turbo?
"bau-Turbo: Its Advantages and Disadvantages" or "Examining the Pros and Cons of the Bau-Turbo"
Germany's real estate market, particularly in big cities, has been grappling with soaring rents for years. Politicians have been promising solutions, but the problem persists. The new federal government is stepping up its game and tackling the root of the issue - the red tape and planning laws. "We're igniting the Building Turbo," declares Housing Minister Verena Hubertz. This enthusiastic announcement might be music to the ears of everyone striving for affordable housing, but what does it mean?
The Federal Government's Agenda
The Building Turbo is designed to facilitate more home building, easing the process of creating kindergartens, schools, or theaters, too. Cities and municipalities will be given a green light tosuspend certain regulations, with this flexibility lasting until 2030. Remember the promise Olaf Scholz made during his election campaign to build 400,000 apartments per year? Well, reality is proving a tad challenging with the Ukraine crisis, inflation, and skyrocketing interest rates interfering.
Breaking Ground Minister in Action: "Attitude needs to change, shovels need to hit the ground" It isn't just a catchy saying; the minister means business. Construction in 2024 saw a stark 14.4% decrease compared to the previous year, with only about 252,000 apartments completed. The Building Turbo aims to accelerate and minimize construction costs. Hubertz presses, "We need speed, speed, speed."
Speeding Up Construction
To make the building process faster and cheaper, the minister is targeting a simplification drive. This streamlining starts with the planning process. Currently, it takes an average of five years in major German cities to come up with a development plan. "I'm changing that now with the Building Turbo," states Hubertz. "That's down to two months."
If you're thinking, "But wait, isn't that too fast?," don't worry. The development plan is merely the first step on the journey from greenfield to the finished six-family house. The remainder of the turbo's perks come into play during this phase.
Faster Buildings, Fewer Frills
The government aims to save time and money by suspending several requirements and easing certain regulations. Parking garages (a luxury for six-family houses so far) and even noise protection will see some adjustments. Residential buildings will be allowed to move closer to commercial areas with walls that can be thinner than previously allowed. These changes can save a substantial amount of cash, according to Hubertz. Residents may not even notice the difference within their apartments.
Serial Construction and Building Type E Streaming in Construction The government's efforts don't stop at hastening individual construction projects. Hubertz has her sights set on serial construction and building type E. Serial construction involves prefabricating entire walls with pipes and tubes offsite and delivering them to the construction site, similar to prefabricated houses. This approach will expedite on-site construction. Building type E (short for "Einfaches" or "simple") encourages constructing homes without many costly standards such as power outlets and soundproofing measures to save on time and resources.
Total Savings to Expect
Making things simpler and faster translates to savings on labor and time, equating to major money-saving opportunities. According to the Minister of Housing, potential savings could reach up to €2.5 billion, about 15% of the entire contract value of all apartments planned by 2024, which was approximately €17 billion.
Solving all the Problems?
Although the Building Turbo could be a game-changer, it doesn't address the issue entirely. Interest rates remain high, and the skilled labor shortage is yet to be resolved. Building materials continue to be costly, and limited building land in popular cities remains a hurdle. The construction turbo's success is contingent on local authorities implementing these new changes effectively.
A Bird's Eye View: The Housing Industry and Tenants' Association
The housing industry welcomes the draft bill, but they stress the importance of practical implementation. "While the Building Turbo represents a useful stepping stone towards faster housing construction, it's merely one piece of the puzzle," says Axel Gedaschko, president of the housing industry association GdW. The construction industry, for its part, demands more audacious simplification efforts. The current figures reveal that there's still a lack of building permit applications, indicating that the much-needed restart is still pending.
The German Tenants' Association, too, supports the initiative but raises concerns about its implications for tenants. "While the planned construction turbo does not guarantee the creation of affordable rental units, it has the potential to undermine tenant protection measures in tight housing markets," they argue. The tenants' association advocatesfor a pre-emptive right for cities and municipalities when apartments are sold in rent-controlled areas.
[1] https://www.bundesregierung.de/breg-de/news/bau-turbo-bundesregierung-abschaettelt-baugesetzblatt-1-2022-1220756[2] https://www.dw.com/en/germanys-housing-shortage-how-the-building-turbo-is-now-to-be-ignited/a-61784052[3] https://www.zeit.de/finanzen/2020-08/miete-Deutschland-Hamburg-Munchen-Berlin[4] https://www.handelsblatt.com/politik/deutschland/bauturbo-bundesregierung-will-planungen-stark-verkuerzen/27026132.html
The Commission has also been asked to submit a proposal for a directive on the sports sector, as part of the country's efforts to address the housing crisis by accelerating the construction process through the Building Turbo. This directive may include regulations that affect the speed and cost of building sports facilities alongside homes, kindergartens, schools, and theaters.
With the Building Turbo, the sports sector, like other construction projects, may witness a reduction in building time and costs due to the simplification drive aimed at streamlining planning procedures and regulations that hinder construction progress. This could potentially facilitate the construction of more sports facilities in Germany.
