Costs of construction set to experience significant decrease
Say goodbye to sky-high housing costs! The new Federal Minister of Housing, Verena Hubertz, is on a mission to make building more affordable. She's got her sights set on significant savings through prefabricated walls and long-term ground leases - potentially saving thousands of euros per square meter!
Verena Hubertz, the dedicated SPD politician, aims to cut construction costs for new residential buildings in half. According to her, we can definitely aim for that astronomical reduction. She plans to do this, among other things, by leveraging prefabrication magic.
In layman's terms, that means building walls can be mass-produced in a factory. With prefabrication, you can literally save a fortune! You're looking at saving 30 to 40% on construction costs, bringing the price down from the usual eur 5,000 per square meter to a more purse-friendly eur 2,500 to 3,000 per square meter. And if that's not enough to impress, Hubertz is convinced that we can do even more! With a bit more tinkering, we could see even greater savings.
But it's not just about cutting construction costs; Hubertz also wants to slow down the relentless rise of land costs. According to her, land costs are a major pain point. That's why she's exploring innovative solutions like perpetual usufruct (think long-term ground leases), which could help lower upfront costs and potentially reduce financing costs over the building's lifecycle.
When asked about the target of building 400,000 apartments per year, Hubertz was cautious, recognizing that the world is in a state of flux. Instead, she's pushing for fundamental reform in construction methods and cost-efficiency, rather than setting fixed targets that may not be achievable under current market conditions.
All in all, Hubertz's plan involves promoting prefabricated construction methods and innovative land use models like perpetual usufruct to achieve substantial reductions in both construction and land costs. By doing so, she's not just shaking up the housing market - she's paving the way for more budget-friendly living!
[1] "Verena Hubertz will halve the cost of housing. How?" ntv.de, rog/dpa. Accessed: March 5, 2023.[2] "Housing minister Verena Hubertz is aiming to boost construction by using prefabrication and other innovations." Inside Housing. Accessed: March 5, 2023.[3] "Prefabricated walls set to reduce building costs." Construction Enquirer. Accessed: March 5, 2023.
In her ambition to halve the cost of housing, Verena Hubertz, the dedicated SPD politician, is not only pushing for mass-produced prefabricated walls to save construction costs but also advocating for innovative solutions like perpetual usufruct, a form of long-term ground leases, to curb land costs. This combined approach is not only reshaping the housing market but also paving the way for more budget-friendly living, opening up discussions in the realm of community and employment policies, particularly related to the construction sector. The policies she introduces could potentially impact general-news topics, such as politics and general-news, as they align with the global aim of making housing affordable for all.
