A lack of housing and low numbers of new buildings are putting a strain on the real estate sector - the conditions for renovations are becoming increasingly unfavorable.

A lack of housing and low numbers of new buildings are putting a strain on the real estate sector - the conditions for renovations are becoming increasingly unfavorable.

A lack of housing and a low number of new buildings are affecting the real estate market. At the same time, a planned regulatory reform could further worsen the conditions for renovations. According to a study commissioned by the Federal Association for Energy-Efficient Building Envelopes, the rate for renovations in the German building stock is currently only 0.83 percent. A survey by the Bauherren-Schutzbund association also showed that only around a third of owner-occupiers with older properties are planning energy-related modernization measures. The delayed implementation of renovation and modernization projects is probably mainly due to the currently high construction costs. Against this background, however, lawmakers are planning a new regulation that could increase costs even further.

The planned reform of the Hazardous Substances Ordinance stipulates that all work on existing buildings that were built before October 31, 1993 must be carried out without specific suspicion under complete asbestos protection measures and as hazardous waste. In order to avoid this “disposal on suspicion”, private property owners must have measurements carried out to prove that they are free of asbestos contamination. However, these measurements are often expensive and there is a shortage of experts. It is also not yet clear whether these clearance measurements meet the requirements of waste law.

The Association of Private Builders (VPB) criticizes the planned reform. Their aim is not to save on necessary protective measures, but rather to ensure that private developers, as the weakest link in the chain, are held solely responsible for the examination and disposal of possible contaminated sites. Construction laypeople are often unable to judge whether the material being installed is dangerous or not. This could result in unnecessary financial burdens for private builders, as even uncontaminated building materials would have to be disposed of as hazardous waste if the clearance measurement is too expensive or no expert is available. This could lead to significant increases in costs without achieving greater health protection.

The planned regulation reform could therefore have negative effects on the market. Private developers could be affected by additional costs and bureaucratic hurdles, which could lead to fewer renovation and modernization projects being implemented. This could lead to a further increase in the housing shortage in the long term.

According to a report by tz.de.