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Market analysis··2 min read

Real estate policy dialogue in Stuttgart: Economic viability and accelerated procedures in focus

At the first real estate policy dialogue held by the IWS in Stuttgart, politicians and the construction industry discussed construction cost reductions, approval deadlines and practical standards.

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Real estate policy dialogue in Stuttgart: Economic viability and accelerated procedures in focus. 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.

Around 100 days after the Baden-Württemberg state government took office, the industry association Immobilienwirtschaft Stuttgart e.V. (IWS) hosted the first real estate policy dialogue. Held at the Sparkassenakademie Stuttgart, the event focused on how building, refurbishment and investment in the state can once again be accelerated and made commercially viable. The objective of this new format is a continuous alignment between legislative plans and practical requirements.

In her keynote address, Theresa Schopper, Minister for Regional Development and Housing of the State of Baden-Württemberg, emphasised the necessity of simplified requirements and lower construction costs. In the minister's view, affordable housing cannot be created through subsidies alone, but primarily via noticeable cost reductions and leaner processes. With the so-called BW-Standard, the state aims to establish practical foundations to move simple and sustainable building from the experimental phase into widespread construction practice.

Industry demands: Deemed planning approval and dedicated points of contact

In the panel discussion that followed, IWS Chairman Axel Ramsperger, Thomas Möller as Managing Director of Bauwirtschaft Baden-Württemberg e.V., and State Parliament member Andreas Braun (CDU) debated specific obstacles. Axel Ramsperger highlighted that building and refurbishment projects require reliable framework conditions to remain economically viable. He also advocated the designation and expansion of inter-municipal commercial zones to provide land for economic transformation.

Thomas Möller criticised deficits in the practical implementation of simplifications that had already been enacted. For instance, the statutory deemed planning approval, according to which a building application is deemed granted after a three-month deadline without an official decision, is frequently rendered ineffective. Planning offices often demand further documentation after this period has expired, which effectively negates the intended accelerating effect.

  • —Consistent application of the three-month deemed planning approval without retrospective hurdles
  • —Establishment of dedicated official contacts for planners and developers
  • —Creation of practical standards for the refurbishment and repurposing of existing buildings
  • —Designation of inter-municipal commercial zones to meet structural demand for land

Transformation of existing assets and the future of the business location

On the panel, Andreas Braun took up a central demand of the IWS and called for binding contact persons within building authorities. These designated coordinators could streamline review procedures and coordinate processes for developers and planning consultancies alike. Braun also criticised the fact that laws passed at state level often filter through to administrative practice with delays, which is why greater willingness to make decisions is required within the authorities.

Against the backdrop of structural change, the conversion and modernisation of existing properties continues to gain importance. For the IWS, it remains crucial that simplified standards and accelerated procedures are not overshadowed by excessive requirements. Baden-Württemberg can only be stabilised as a real estate location in the long term if investment decisions remain predictable.

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