Property sector associations are pressing for swift action to reduce construction costs, presenting their own draft legislation advocating for simplified building regulations, according to a report in “Welt”. The proposal centers around a “cost-optimized basic living standard” defined as “an economical, functional minimum standard for healthy, safe and usable living space that sustainably reduces construction costs.
The draft, spearheaded by the German Association of Housing and Real Estate Companies (GdW), details minimum requirements for heating, insulation, water and electricity supply, sanitation and soundproofing. The legal framework would be established within the German Civil Code (BGB), with specific technical details outlined in a separate regulation.
GdW President Axel Gedaschko emphasized a fundamental shift in approach, stating the goal is not to address exceptions to overly stringent standards, but to define a lower, more affordable standard as the statutory benchmark. The GdW represents approximately 3,000 housing companies managing around six million apartments, highlighting the significant influence the proposal carries. Discussions with other property sector associations are ongoing, with the finalized text slated for presentation to the Federal Ministry of Construction and the Ministry of Justice, as well as the governing parties, in the coming days.
This initiative directly challenges the government’s current plans for a “Building Type E” concept, unveiled by Construction Minister Verena Hubertz and Justice Minister Stefanie Hubig (both SPD) in November. Building Type E proposes a framework allowing deviations from established technical guidelines without constituting defects, which would make it more difficult for tenants and buyers to sue over lower equipment standards. However, the implementation of this government plan is projected to be delayed until late 2026.
Industry representatives, like Gedaschko, criticize the government’s timeline, characterizing the current proposals as “complicated, lengthy and ultimately prone to dispute”. The GdW’s swift action demonstrates a frustration with the perceived inaction and uncertainty surrounding the government’s approach, potentially signaling a power struggle between the industry and policymakers aiming to tackle the housing affordability crisis. This initiative underscores a growing pressure on the government to prioritize cost reduction, even if it means redefining minimum living standards, raising concerns about potential compromises on quality and tenant protections.