Slashing Housing Construction Costs with Minister Hubertz's Plan: Building Type E
State Guarantees for New Housing Projects to be Issued by Housing Minister Hubertz - Government assurance sought by Construction Minister Hubertz for forthcoming residential projects
Hey there! Let's talk about the latest in the housing sector, as proposed by Hubertz, the Federal Minister of Housing. Seems like many smaller and even publicly active companies in the business are struggling due to lack of equity. Hubertz explains that these companies often have to shell out around three to four percent interest for a real estate loan. To help 'em out, she thinks the state can step in and provide guarantees or invest in an equity fund. Why? To lower those interest rates and make construction more affordable, that's why!
Now, Hubertz is all fired up about this thing called building type E. "E" is short for both "simple" and "experimental," so it should be easier to flex the rules a bit, right? This project is gonna be a game-changer along with the new Minister of Justice, Stefanie Hubig (SPD). By tweaking construction standards and regulations, they expect to see a significant drop in construction costs.
Here's the deal: right now, the market's struggling to build apartments that don't cost more than 15 euros per square meter cold rent, thanks to high costs. According to Hubertz, her goal is to make it happen: under 15 euros per square meter in new buildings should be achievable, and it's even in the coalition agreement.
Hubertz views the housing sector as a major economic driver in a weakening economy. Around half of all investments are construction investments, which means it can serve as an economic locomotive.
Now, there's some controversy surrounding building type E. Critics argue that the cost savings might not translate into more affordable apartments for tenants, as construction companies and property owners seem to be the primary beneficiaries[2]. It's part of a broader push for streamlined construction processes, with Stuttgart promoting this type of construction as a way to innovate, speed up processes, and deviate from stringent regulations[1].
However, concerns about safety and quality standards remain. Some worry that the introduction of building type E will bypass some safety regulations, leading to cheaper construction costs, but potentially not translating to more affordable housing for the masses[2]. As of now, Hubertz isn't mentioned in the search results regarding the specific implementation of building type E, but her policy goals align with the broader initiative to minimize red tape and costs in construction.
Stay tuned for more updates on this exciting development in the housing sector! 🙋♀️🏠🔧🚀
The Commission has been consulted on the draft directive in the realm of politics, focusing on the protection of workers from the risks related to exposure to ionizing radiation in general-news, possibly raising concerns about the safety and quality standards of innovative construction methods like building type E. Interestingly, theFragmentary information available suggests that Hubertz, the Federal Minister of Housing, aims to lower finance costs for smaller and publicly active companies in the housing sector and the business world, as high interest rates hinder construction affordability.
