As of: February 15, 2024, 7:04 p.m
By: Amy Walker
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Press
Split
Despite the acute situation, according to a report, the government cannot agree on the necessary measures to stimulate the construction industry.
Nothing else threatens to happen.
Berlin – The situation is actually clear: the crisis in the construction industry is one of the main reasons for the impending recession in the country.
Due to increased interest rates, excessive bureaucracy, inadequate digitalization and high construction costs, the industry is in an unprecedented crisis.
The revival of this industry, which is so central to Germany, should be a political priority.
But so far there has been little more than lip service.
Ampel had agreed on “Bau-Turbo”.
The industry has already made many different suggestions to politicians that would currently help: reducing bureaucracy, reducing real estate transfer tax, clarity and reliability in funding programs, less strict regulations, tax incentives, to name a few examples.
In September 2023, industry representatives were invited to Berlin to discuss some of these measures at a construction summit with the government coalition.
This resulted in the promise of a “construction turbo” that, among other things, is intended to streamline planning and approval procedures.
In November, the federal and state governments also agreed on a pact to simplify the approval process.
In order to achieve this streamlining, the Federal Ministry of Construction wants to create a special regulation in the building code that would apply temporarily until the end of 2026.
The government also wants to reform the Building Construction Statistics Act so that it can be recorded more quickly and better how many apartments are actually built each year - so that political measures can be taken earlier if necessary.
Most recently, the federal government also planned to improve tax incentives for the construction industry with the Growth Opportunities Act.
But this law is stuck in the Bundesrat, where the CDU-led states are blocking it.
The mediation committee is working on an entry - but as long as it is not in place, the relief will not reach the industry.
Both laws are probably stuck in the traffic light deliberations
As the
Handelsblatt
now reports, the other two laws to stimulate the construction industry are also stuck - within the government.
According to the newspaper, one law is stuck in interdepartmental coordination, the other in early coordination, i.e. when a draft is being drawn up.
The government circles cited by
Handelsblatt
hold the FDP responsible for this.
Meanwhile, representatives in the construction industry are rallying.
“Investors are currently scared, that’s because of politics,” explains Steffen Mechtner, head of the construction department at BayWa AG, in an interview with
Ippen.Media
.
As long as nothing happens there will be no construction.
New buildings in a field or in a new housing development in Glessen (NRW) © IMAGO/Christoph Hardt
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But even the measures currently being sought by politicians are not being well received everywhere.
From the perspective of important players in the industry, such as the Tenants' Association, the Federal Chamber of Architects (BAK), the Working Group for Rural Agriculture (AbL) and the Association for Urban, Regional and State Planning (SRL), the government's current plans would do little to do more to build apartments.
Together with nature conservation associations such as the Nature Conservation Ring, Nabu and German Environmental Aid (DUH) as well as social associations such as the VdK, they clearly criticize the traffic light plan.
Criticism of projects from the construction industry
“With almost 900,000 approved but not yet built residential units (so-called construction surplus), there is great potential for creating living space on already designated building land,” the alliance said in a statement.
If construction projects are allowed to ignore central aspects of the building code in the future - such as public participation and hearing their concerns - the alliance fears a “de-democratization of the planning culture”.
An association representative spoke to
Ippen.Media
about an “anti-democratic” project that was also “counterproductive”.
A new paragraph in the building code will make it possible in future to completely disregard numerous provisions of the building code “in areas with a tight housing market”.
This should apply to construction projects that would build at least six residential units or if it leads to more living space in an existing building (e.g. expanding an attic).
The reason for this is that there is an “urgent need for more affordable housing”.
The associations criticize the fact that the planned law does not contain any requirements that would ensure that affordable housing is actually created in the end.
The only requirement is that at least six residential units be created - whether these would ultimately be condominiums or rental apartments at fair prices is not stipulated by law.
That means: Even if the traffic light could agree on their plans internally - which they apparently don't yet - they would still have to face criticism from the associations.
Meanwhile, the construction industry is slipping further into crisis.