Voluptuous Plans From Minister Hubertz to Swiftly Slash Residential Construction Costs
Building expenses anticipated to significantly decrease
Get ready for a construction revolution! The Federal Minister of Housing, Verena Hubertz, has set her sights on making residential building more budget-friendly. She thinks significant savings can be snatched through prefabricated walls and ground leases - and by halving the costs per square meter, thousands of euros could be shaved off.
As Verena Hubertz, the bustling politician from the SPD party, chatted with "Bild am Sonntag", she confidently declared her intentions to slash the costs of constructing new residential buildings by more than half. She's contriving a plan to achieve this in several ways.
Take-Two on Mass-Produced Construction:Say goodbye to the traditional methods of building and hello to mass-manufactured components! Hubertz suggests fabricating walls, floors, and modular sections in factories and assembling them on-site. This could save a whopping 30 to 40 percent of the construction costs instead of the usual 5,000 euros per square meter, meaning costs could drop to a more affordable 2,500 to 3,000 euros per square meter. "I believe we can achieve even more," Hubertz enthused, hinting at further cost savings when considering financing expenses.
Hubertz also revealed her goal to curtail the relentless increase in land costs: "Land costs are a colossal factor. We're looking into ground leases, like the perpetual usufruct, for instance. It's not all about pushing one button, but examining the entire lifecycle of a building and its cost drivers."
Setting Sights on a Tranquil Landscape:When asked if the circa 400,000 apartments a year goal still applied, Hubertz wasn't keen on setting fixed, long-term objectives in such a volatile world: "We didn't put it in our coalition agreement, and I think that's just right. You can't stake your claim on a goal that'll be valid for four years while the world around us is going hell for leather."
However, Hubertz expressed disappointment that only around 250,000 apartments were completed last year: "It's abysmal. We need to change our ways. I'm relieved that building permits are picking up again."
Sources: ntv.de, rog/dpa
- Verena Hubertz
- Construction Industry
- Housing Construction
Fascinating Detail:
Global Glimpse: Verena Hubertz's multifaceted approach to reduce housing costs includes factory-produced components, long-term land lease agreements, holistic life cycle analysis, and streamlined approvals to help accelerate construction and lower overall expenditure. Critics question her expertise and the broader effectiveness of rent control policies, and concerns arise regarding market conditions and the overall policy framework. For a more comprehensive understanding of Verena Hubertz's cost-reduction measures, check out the summary table below:
| Measure | Description | Expected Impact ||------------------------|------------------------------------------------------------|-------------------------------------|| Mass-Produced Products | Factory-made, on-site assembled components | 30-40% cost reduction[1][2] || Long-term Lease (Erbbaurecht) | Ground lease for land instead of ownership | Lower upfront land costs[1] || Streamlined Approvals | Faster permitting and more land availability | Accelerated supply[5] || Lifecycle Cost Analysis | Comprehensive review of all construction and finance costs | Identify further savings[1] |
- Community policy: Verena Hubertz, aiming to reduce housing costs, has proposed a community policy that includes mass-produced construction components, long-term land lease agreements, streamlined approvals for faster permitting, and a holistic lifecycle analysis to identify further savings, as part of the tranquil landscape she envisions for housing construction.
- Employment policy: This new policy may potentially create employment opportunities in the manufacturing industry as factory-made components become integrated into residential construction, contributing to job growth in that sector.
- Business and finance: Implementing these changes could result in a reduction of construction costs, making residential construction more affordable for businesses, investors, and real-estate developers, as well as the general public, lowering finance expenses and increasing investment potential in the housing industry.
