A breakdown of Bau-Turbo's features and its shortcomings.
Article:Title: The Construction Turbo: Boosting Building and Cutting CostsBy: Volker PetersenSocial Media: Facebook, Twitter, Whatsapp, Email, Print, Copy Link
In big cities, the search for an apartment has been a significant problem for years. Despite the promises of solutions from politicians, rent prices continue to climb, and it seems that not enough housing is being built. The government believes they have the answer — the "Construction Turbo." This initiative promises to streamline the planning process to get excavators moving faster and reduce housing prices. But what does it actually mean?
What does the government aim for?
The main focus of the Construction Turbo is to help create more apartments, as well as simplify the planning of infrastructure like schools and theaters. Specifically, cities will be given the power to bypass regulations temporarily, allowing for swifter housing development. The objective is urgent, as Scholz had pledged to build 400,000 apartments annually during his election campaign. However, factors like the Ukraine war, inflation, and increasing interest rates have posed challenges.
Faster Building Through Simplification Since planning procedures tend to drag on for an average of five years in major German cities, Hubertz aims to speed things up rapidly. Her plan? To have the development plan process shortened to just two months. However, this doesn't mean all regulations will be discarded; rather, the focus will be on cutting the frills.
How will building become faster?
The foundation of the Construction Turbo lies in simplification. This starts with maximizing the speed of planning procedures. By streamlining the development plan process, Hubertz believes she can drastically shorten the duration of building projects. They also aim to make modifications like closing building gaps and adding floors to existing structures easier, although this is not possible if significant environmental effects may result.
Easing Construction Demands The aim is to build more economically, and the German government intends to do so by slashing costs. The savings will come from lower administrative costs and easing some burdens on private individuals and the construction industry. Hubertz pointed out that removing unnecessary frills, such as building a basement garage, can save a considerable amount of money that won't affect the apartment's comfort once it's built.
Serious construction and building type E have also been in the spotlight. Serial construction involves prefabricating entire walls with pipes and tubes for on-site installation, while building type E lets developers leave behind expensive standards like multiple power outlets or soundproofing measures.
Cost Savings
With smarter construction and faster building times, the Ministry of Housing, Construction, and Urban Development expects the initiative to save around 2.5 billion euros. This represents roughly 15% of the total spending on apartment construction planned by 2024, which was about 17 billion euros.
Concerns and Expectations
While the Construction Turbo indicates progress, it doesn't resolve all issues in the housing market. Rising interest rates and the shortage of skilled labor remain concerns, while materials continue to be costly. Additionally, success depends on whether local authorities will embrace the new opportunities. Moreover, potential further measures are in the works, such as protracting the rent freeze until 2030, initially set to expire at year's end.
The housing industry has welcomed the draft bill, but they stress the importance of implementation, while the German Tenants' Association supports the initiative but remains cautious, fearing it may weaken tenant protections in competitive rent markets. Ultimately, the German Construction Turbo initiative seeks to tackle the housing shortage through a mix of regulatory reform and technological innovation to deliver more efficient, affordable, and energy-efficient housing.
The Commission has also been asked to submit a proposal for a directive on finance, investing, and real-estate, particularly focusing on the housing-market and the investing opportunities in the swiftly changing landscape of the housing-market as a result of the Construction Turbo.
The Commission's proposal is expected to ease burden on both private individuals and the construction industry, with a focus on investing in properties that adhere to the principles of the Construction Turbo, such as buildings constructed via serial construction methods, building type E, and cost-saving modifications like omitting basement garages.
