The German government is prioritizing innovative strategies to address housing shortages, focusing on repurposing vacant commercial spaces and streamlining construction processes. Federal Minister for Housing, Urban Development and Building, Verena Hubertz, announced the allocation of funding within the draft budget for a program called “Commercial to Residential” designed to convert unused commercial properties into living spaces.
The shift towards remote work and changes in consumer behavior have left numerous commercial spaces vacant, representing a significant potential resource for addressing the current housing challenges. Minister Hubertz highlighted the diverse range of available spaces, emphasizing their potential for adaptation and repurposing. She cited a Hamburg project employing a “pop-up housing” concept within a former shopping center as a prime example of how quickly new residential units can be created.
Minister Hubertz has appealed to major supermarket chains like Lidl and Aldi, urging them to utilize the roof spaces of their stores more effectively for residential development. She proposed a model where these companies could receive rental income for allowing residential construction on their properties. Furthermore, she suggested the possibility of adding one or two additional floors to existing row house developments, particularly in cities like Berlin.
Recognizing the current lengthy approval processes, Hubertz stressed the need for faster permits and the adoption of new construction concepts. The government’s “Construction Acceleration” initiative aims to expedite project timelines. Serial construction methods, she believes, could reduce costs by 30 to 40 percent.
While specific construction targets have been removed from the coalition agreement, Minister Hubertz stated her focus will be on measuring progress through speed and cost efficiency rather than rigidly defined numbers. She expressed an ambition to halve current construction costs, currently averaging 5,000 euros per square meter, to a target of 2,500 euros.
The extension and stricter enforcement of the rent price control measures remain a priority. Hubertz intends to address non-compliance effectively.
Furthermore, Justice Minister Stefanie Hubig (SPD) is establishing an expert group that will examine various housing models, including furnished rentals, which the minister identified as an area where regulations are being circumvented.