A lack of housing and low numbers of new buildings are putting a strain on the real estate sector: renovations and modernizations face challenges.

A lack of housing and low numbers of new buildings are putting a strain on the real estate sector: renovations and modernizations face challenges.

A lack of housing and a low number of new buildings are currently putting a strain on the real estate sector. At the same time, the conditions for renovations seem to be becoming increasingly unfavorable. 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 shows that only around a third of owner-occupiers of older properties are planning energy-related modernization measures. The high construction costs are a decisive factor why both renovation and modernization measures are making slow progress. Against the background of an increasing housing crisis, it seems all the more incomprehensible that lawmakers are planning a new regulation that could further increase the costs of renovation measures. According to a report by Merkur.de, a reform of the Hazardous Substances Ordinance is being discussed. Accordingly, all work on existing buildings that were built before October 31, 1993 should be carried out under asbestos protection measures and hazardous waste disposal without any specific suspicion. This would place an enormous financial and bureaucratic burden on property owners. In order to avoid “disposal on suspicion”, property owners would have to have measurements carried out, which incur additional costs. The planned reform has met with criticism from the Association of Private Builders (VPB), which points out that builders are usually not in a position to assess the risk situation with regard to asbestos. This can lead to unnecessary additional financial burdens. The VPB therefore calls for a fairer distribution of responsibility for the examination and disposal of possible contaminated sites. This planned regulation reform could have a significant impact on the real estate market and the industry. Private developers in particular could be heavily burdened financially, which could lead to further delays in renovation and modernization measures. It remains to be seen whether the reform will be finally approved and what specific requirements will then apply.