The BFW Regional Association Central Germany has recently commented on the situation in residential construction, calling for the introduction of more substantial tax incentives. The aim of this measure is to revitalise building activity, which is currently being hindered by various factors.
The association's demand focuses on the need to establish faster planning and approval procedures. This is intended to help implement projects more efficiently and reduce bureaucratic hurdles that currently delay construction projects.
Need for a Comprehensive Strategy
The BFW Regional Association Central Germany emphasises that a sole focus on tax incentives will not be sufficient. Instead, a comprehensive approach is required, considering various aspects of the construction and real estate sector. This includes not only fiscal framework conditions but also process optimisations in administration.
The current market situation, characterised by increased construction costs and interest rates, is leading to noticeable reluctance among investors and project developers. The association highlights that the proposed special depreciation allowances could provide an important impetus to counteract these trends and accelerate the realisation of urgently needed housing once again.
Framework Conditions for Investments
The necessity of active political shaping to improve the framework conditions for investments in residential construction is evident. The BFW Regional Association Central Germany stresses that tax relief, combined with more efficient approval processes, represents an essential prerequisite for a sustainable recovery of the sector.
- —Demand for stronger tax incentives.
- —Concern for the acceleration of planning and approval procedures.
- —The aim is to revitalise construction activity in residential building.
The association assumes that the challenges in residential construction can only be overcome through a targeted and coordinated strategy involving politics and business. An increase in willingness to invest is of central importance to meet the demand for new housing in Germany.
