Verena Hubertz: Seeking Revolution in Residential Building Costs
Reducing Housing Costs: A Priority for Hubertz
Get ready, folks! Germany's new Housing Minister, Verena Hubertz, is steering us towards a more wallet-friendly residential building landscape. She's intent on slashing construction expenses by half!
In an interview with Bild am Sonntag, this SPD politico laid out her strategy for achieving this ambitious goal. The key players in this construction revolution? Pre-fabricated wall structures and ground rent regulation.
Keep it simple, build it smart
Hubertz advocates for the increased use of pre-fabricated components that are manufactured in factories and assembled on-site. According to her, this approach could potentially save a whopping 30-40% per square meter compared to traditional building methods. With current construction costs averaging around 5000 euros per square meter, we’re looking at potential savings of 2500 to 3000 euros per square meter!
A closer look at financing costs, she said, would give us a complete picture—and perhaps even higher savings.
When in Rome, slow the growth of real estate
Land costs, as we know, are a major construction cost driver. Hubertz is tackling the issue head-on by looking into ground rent reforms. "We're not just pressing one button to solve the problem," she assures. Quite rightly so, as the lifecycle of a building comprises multiple cost drivers that require careful consideration.
Strong Demands, Flexible Approach
When asked about the goal of building 400,000 new apartments annually, Hubertz wasn’t keen on setting a stone-carved target for four years given the rapidly changing world. Nonetheless, she acknowledged the decrease in apartment construction last year as a dire situation that needs immediate attention. Luckily, building permits are on the rise again, offering a glimmer of hope for more affordable housing in the near future.
These initiatives form part of Hubertz's vision for a construction "Turbo" for Germany. But their success depends heavily on their implementation and overcoming industry hesitation. Remember, it’s not just about bringing down construction costs—it's about making residential construction feasible and accessible for all!
Sources: ntv.de, rog/dpa
Verena HubertzConstruction IndustryHousing Construction
Insights
- Verena Hubertz's overall strategy involves streamlining processes, promoting modern construction techniques, expanding land availability, and employing regulatory measures to increase the speed and affordability of residential construction in Germany.
- Key measures include:
- Promoting prefabrication and modern construction methods to reduce the time and cost of building.
- Simplifying and streamlining building permit processes to cut bureaucratic delays and costs.
- Expanding land supply and considering ground rent regulation to lower land acquisition costs.
- Extending rent controls and stricter rules on index-linked rents to increase affordability in urban centers.
- Verena Hubertz's strategy for reducing residential building costs involves not only promoting pre-fabricated wall structures but also implementing employment policies that encourage the use of pre-fabricated components, potentially saving significant amounts in construction costs across the industry.
- In order to achieve her ambitious goal of slashing construction expenses, Verena Hubertz plans to investigate the financial aspects of the industry and study the employment policies currently in place, with the aim of optimizing costs in the business sector.
