The Federal Cabinet has approved the Urban Development Report 2025 presented by the Federal Minister for Housing, Urban Development and Building. This report represents a well-founded analysis of the current situation in German towns and municipalities and simultaneously documents the Federal Government's activities in urban development policy over the past four years. The report was prepared with scientific support from the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR).
The Urban Development Report 2025 provides a detailed discussion of the goals, strategies and fields of action of German urban development policy. It succinctly identifies significant challenges for future urban and regional development and, based on these, outlines political options for action. These are intended to specifically support towns and municipalities and strengthen their resilience. A central foundation is the federal government's integration of housing, spatial planning and regional policies.
The report focuses on various future issues. These include, among others, dealing with the consequences of climate change, the development of new residential areas, and the revitalisation of existing urban quarters. The strengthening of local centres and town cores, as well as the expansion of sustainable mobility concepts and efficient infrastructures, are also addressed and regarded as aspects of urban planning requiring integration.
The Federal Minister emphasised that urban development is fundamental for shaping the living environment of today and the future, both in urban and rural contexts. She referred to urban development funding as a central lever, with federal funds for this purpose being increased to EUR 1 billion for the first time this year. These investments aim to improve the quality of life, from school renovations to playgrounds, green spaces and social facilities.
At the same time, the increasing digitisation and smarter orientation of urban development are emphasised. This leads to faster planning processes, greater transparency of procedures, and improved controllability of decisions. These developments are intended to consolidate the capacity of local authorities to act and make them more resilient to current challenges.
An overarching goal of the federal government, federal states and local authorities remains the creation and preservation of liveable, functional and public welfare-oriented cities, towns and regions. German urban development policy continues to be guided by the “New Leipzig Charter: The Transformative Power of Cities for the Common Good”, which was adopted in 2020 during Germany’s EU Council Presidency. This charter forms the conceptual framework for integrated urban development, synergistically considering social, ecological and economic dimensions to prepare urban and rural structures for future requirements.
