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Market analysis··2 min read

Initial Assessments of the 'Bauturbo' Act: Start-up Phase for Housing Promotion

DIP partner Aengevelt Immobilien analyses the initial experiences with the 'Bauturbo' Act, which came into force on 30 October last year.

AI generatedInitial Assessments of the 'Bauturbo' Act: Start-up Phase for Housing Promotion – AI-generated illustrative image
Initial Assessments of the 'Bauturbo' Act: Start-up Phase for Housing Promotion. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Aengevelt Immobilien, as a partner in the DIP – Deutsche Immobilien-Partner network, has conducted an initial assessment of the effects of the so-called 'Bauturbo' Act. The Act on the Acceleration of Planning and Approval Procedures in Housing Construction, which came into force on 30 October last year, was intended to significantly simplify and speed up building processes. However, current observations suggest a phase of establishment, in which the intended effects have not yet fully materialised.

The initiative to promote building projects through simplified procedures was launched by the German government to address the urgent need for housing in Germany. Essentially, the Act stipulated that development plans for residential buildings with up to 100 housing units, not located in outer areas, could be drawn up or amended under the simplified procedure according to Section 13a of the German Building Code (BauGB). This was intended to enable quicker implementation of construction projects.

Initial Challenges and the Role of Municipalities

The initial response from municipalities has been varied. Although the 'Bauturbo' has been in force for several months, a noticeable increase in procedures utilising the simplified approach under Section 13a BauGB is not yet observable nationwide. This could be attributed to various factors, including adaptation processes within local government administrative structures and the complexity of implementing new legal frameworks.

A crucial point highlighted by Aengevelt Immobilien's analysis is the necessity for an active role on the part of municipalities. Effective use of the potential of the 'Bauturbo' Act requires local authorities to proactively and promptly draw up or amend corresponding development plans. The legal possibility alone does not automatically lead to acceleration if local building authorities do not specifically apply the new instruments.

The assessment underscores that close dialogue between project developers, builders, and the responsible authorities remains essential to fully exploit the advantages of the 'Bauturbo' Act. Only through consistent application and optimisation of internal processes at municipal level can the Act fulfil its purpose as an accelerator of housing construction. Aengevelt Immobilien will continue to precisely monitor and analyse the further development of the 'Bauturbo' Act and its impact on the German housing market.

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Michael Freitag
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More than 15 years of experience in Bavaria & surroundings
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