German Government Plans Major Changes to Speed Up Affordable Housing

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GERMANY: As the cabinet prepares to present its 2026 budget proposal on July 30, housing expenditure is expected to be a key focus. 

In a country where securing development approvals often takes longer than the actual construction process, Construction Minister Klara Geywitz aims to give municipalities a powerful tool to bypass Germany’s complex urban planning regulations. This tool, dubbed the "Bau-Turbo" (construction turbo), comes in the form of a new provision (§ 246e) proposed for inclusion in the German Building Code. 

If passed this fall, the amendment would allow municipalities to approve new residential construction, renovation, and change-of-use projects even if they deviate from existing building code provisions. In addition, planning applications would be automatically approved within two months unless actively rejected by the local authority. 

Germany’s current system involves a patchwork of regulations across its 16 federal states and various municipalities, with rules covering everything from the number of electrical outlets per room to the design and colour of rooftops. The proposed legislative change is expected to streamline this process significantly. 

According to the Construction Ministry, the amendment could generate annual savings of approximately €2.5 billion ($2.9 billion) for businesses, citizens, and local governments. 

Source: German Government