The Bavarian state government has announced a significant reorganisation of housing subsidies, which will be implemented from next year in the form of an annual construction programme. The aim is to increase the efficiency of allocating funding for the creation of housing in the Free State. To achieve this, funding conditions are to be simplified, and planning certainty for the construction and housing industry is to be ensured.
Bavarian Minister of Construction Christian Bernreiter emphasised to the cabinet that the measures are intended to intensify residential construction in Bavaria. A central element is the so-called "Bavarian Construction Turbo", which provides for simplifications for the conversion of existing buildings. Furthermore, Bavaria will be a pioneer in introducing Building Type E nationwide and will massively advance the digitisation of the approval process.
For the dual budget of 2026 and 2027, a total of 3.6 billion EUR is earmarked for housing subsidies. Of this, 1.15 billion EUR is specifically allocated for rental housing subsidies and the "Junges Wohnen" (Young Living) programme for the 2027 annual construction programme. Construction companies and project developers can apply for funding from the approval authorities of the district governments and the cities of Munich, Nuremberg, and Augsburg until mid-October.
- —Local housing supply and demand
- —Obligations arising from municipal stipulations on socially equitable land use
- —Project progress
- —Efficiency of measures
The selection of funded projects for the 2027 annual construction programme will take place this year in the State Ministry for Housing, Building and Transport. The realignment of the funding programmes is intended to enable more precise control of funds and a more comprehensive overview of nationwide construction projects.
A key component of the reform is the simplification of funding conditions. Existing components are to be merged, and new opportunities created for municipal enterprises, which will culminate in a common guideline for promoting housing construction in Bavaria. Supplementary technical requirements will largely be dispensed with, and mandatory accessibility will be dropped to allow for more flexibility and a reduction in construction costs. However, subsidies for owner-occupied housing and the promotion of adaptations for people with disabilities will remain.
In addition to financial adjustments, the state government is also pressing ahead with digitisation. The cabinet has approved a digital amendment for association consultation, which envisages a complete transition to digital building applications from 2027 and the withdrawal of formal requirements where possible. Minister Bernreiter emphasised that the digital building application is already well-received in Bavaria, with around 6,000 digitally submitted applications monthly, leading to a significant acceleration of approval procedures. These efforts are intended to contribute to achieving the overarching goal of creating more housing through efficient use of funds and improved planning certainty.
