On the occasion of the publication of the latest building permit figures, the BFW Federal Association of Free Real Estate and Housing Companies emphasised the need for more comprehensive measures to strengthen residential construction in Germany. Although the figures have not decreased, the current development is not sufficient to cover the existing housing demand and to stimulate the industry sustainably.
BFW President Dirk Salewski stated in Berlin that the situation could be described as “better than nothing, but nowhere near enough”. He pointed out that an increase of merely 1,700 approved dwellings compared to the same month last year does not represent a substantial improvement. The discrepancy between permits and actual completions remains a significant problem.
Completion figures below demand
Last year's completion figures underscore the urgency of further steps. With 206,600 new dwellings, the number of completed units was significantly below the forecast demand. This illustrates that permit activities alone are not sufficient to achieve the desired goals and relieve the housing market. An acceleration is needed throughout the entire construction process, from planning to realisation.
Salewski sees the current phase as an opportunity to provide targeted impetus to boost new residential construction. To this end, he called for a special depreciation allowance (Sonder-Afa) and additional accompanying measures to increase the attractiveness of construction investments. An investment-friendly policy is essential to strengthen industry confidence and mobilise capital for new projects.
The upcoming investors' conference in Frankfurt am Main, attended by the Federal Minister of Finance and the Federal Minister for Housing, Building and Urban Development, is considered an important platform for discussing and implementing these demands. Salewski highlighted that the federal government's fundamental approach, especially in combination with instruments such as Building Type E, the amendment of the Building Code (BauGB), and the so-called ‘Bau-Turbo’, can achieve positive effects for the growth of residential construction. It is expected that these measures in their entirety will contribute to a sustainably positive investment climate and increase the volume of construction in Germany. The combination of various political instruments is intended to help reduce regulatory hurdles and streamline administrative processes.
- —Special depreciation allowance as an investment incentive
- —Accompanying measures to strengthen new residential construction
- —Use of Building Type E and BauGB amendment
- —Utilisation of the ‘Bau-Turbo’ to accelerate planning and approval processes
