New push at state level to mitigate the construction crisis: According to IZ reporting, the prime ministers want to propose a pact between the federal and state governments in order to coordinate building regulations and building permit processes more than before. In addition, the states should include harmonized type approvals in the respective state building regulations in order to simplify and accelerate the approval processes for local construction projects. The federal states would also like to promote innovation and experimentation in construction and initiate an adaptation of the model building regulations in order to allow a building type E for simplified and innovative social housing projects. In addition, “the conversion, conversion or use of alternative and innovative building materials and the use of new technologies” should be made easier. This emerges from a draft resolution entitled “Pact for planning, approval and implementation acceleration between the federal and state governments”, which is to be discussed by the upcoming Prime Minister’s Conference.

Commentary by Frank Wojtalewicz

The Prime Minister's Conference's initiative hits the mark. Together with the other recently adopted measures to combat the construction crisis, this initiative can be the starting signal for a revival in the industry. The Prime Minister's Conference is sending several important signals. You leave the small and small details of individual measures behind and try to find consensus and standardization at the cross-country level. The suggested joint initiative by the federal and state governments is also important because it is decided locally whether building permits will be issued more quickly. A fundamental harmonization of state building regulations can also make an important contribution in this context, because too often different bureaucratic regulations make it difficult to implement construction projects quickly. It would now be important that the federal states also dare to tackle the “hot potato” of real estate transfer tax, the uniform abolition or at least cap of which is still a long time coming.

Managing Director
d.i.i. Investment GmbH