German Construction Industry Chief Criticizes Housing Market in Germany
The President of the German Construction Industry Association, Peter Hübner, has expressed strong criticism of the current state of the housing market in Germany, calling it a “system failure.” He attributes the missed targets in the housing sector to the unclear funding landscape of the previous government.
In an interview with RTL and ntv, Hübner stated, “I believe it is a system failure. It is also a system failure of the unclear funding landscape of the grand coalition.” However, he expressed optimism that the current government will do better in the future.
Hübner also acknowledged the need for the construction industry to improve its own processes, saying, “We must certainly design our processes more efficiently. We must become even more digital.” He emphasized the importance of advancing the use of digital methods, such as Building Information Modeling (BIM), but noted that the willingness of clients is also necessary.
The industry chief called for the reduction of bureaucratic hurdles and the provision of more affordable land to create affordable housing. He pointed out that the current utilization rate of the industry is only 70 percent. Another problem, according to Hübner, is the fragmentation of construction contracts, particularly in road construction, which often leads to unnecessary project delays.
Despite the current challenges, Hübner remains optimistic that a trend reversal in the housing market can be achieved in the next few years, provided that the public sector provides support and bureaucratic obstacles are removed. He sees potential for cost savings of up to 30 percent in “simple construction” without compromising on quality.