The Bavarian construction industry and VdW are calling for building regulations to be simplified despite record funding
Quick Look
- Despite record government subsidies, housing construction in Bavaria is not getting off the ground.
- The Bavarian construction industry and the association of housing companies are calling for a fundamental simplification of building regulations and administration in a ten-point program in order to make building cheaper and speed up the work of the building authorities.
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Why It Matters
Housing construction in Bavaria is not getting off the ground despite record government subsidies. Only 47,359 apartments were completed last year, a decline of 14 percent compared to the previous year. A trend reversal is not expected this year either.
According to two large industry associations, housing construction in the Free State is not getting off the ground despite record government subsidies. The Bavarian construction industry and the Association of Housing Companies (VdW) are therefore calling for a ten-point program to fundamentally simplify building regulations and administration in order to make building cheaper again and speed up the work of the building authorities. The reason for the publication is the Expo Real real estate fair, which begins today in Munich.
Money alone doesn't help
The two associations referred to the official figures: Last year only 47,359 apartments were completed in Bavaria, which was almost 14 percent less than the previous year. A trend reversal is not expected this year either. The state government and federal government are supporting housing construction in Bavaria this year and next with a total of 3.6 billion euros. According to experts' estimates, around 70,000 new apartments would have to be built in Bavaria every year to meet demand.
“Affordable housing is not a wish, but a requirement for a strong business location in Bavaria,” said VdW director HansMaier. The ten points are aimed partly at the federal government, partly at the state government and partly at the municipalities.
Municipalities should also do their part
The first priority is the demand for municipalities to actually apply the simplification of the building code, which the federal government calls “Bauturbo”, and to designate new building land more quickly. Cities and municipalities should therefore no longer sell building plots at a maximum price to the highest bidder, but should instead be based on the concept of creating affordable housing.
The federal government should make private housing construction more attractive again through tax advantages. In view of the ups and downs in state housing funding in recent years, the two associations are also calling for reliable funding conditions that will not be changed at short notice. “Record funding alone will not solve the housing shortage,” says the paper. The planning and approval procedures of the building authorities should be digitalized and accelerated from the ground up. There are also several other points.
Open Questions
- What exactly should the tax advantages for private housing construction look like?
- What specific steps are municipalities planning to designate building land?
- How should the digitalization of the planning and approval processes be technically implemented?
