Germany unveils construction cost‑cutting action plan

On 19 June 2026, German Construction Minister Verena Hubertz and Finance Minister Lars Klingbeil presented an action plan aimed at lowering building costs and speeding up residential construction at an investor conference in Frankfurt. The plan proposes faster planning and permitting processes – limiting building‑plan procedures to two years – and a shift to fully digital applications by 2028, with paper submissions allowed only in exceptional cases.

It also promotes modular and serial construction, introduces a simplified "building type E" with reduced standards, and calls for a centralised funding instrument for new‑build projects starting in 2027. Tax depreciation for investors is slated to be extended through 2029 to improve planning certainty.

The Austrian Association of Project Developers (VÖPE) welcomed the German measures, calling them a model for Austria. VÖPE President Köttl said, "Das deutsche Maßnahmenpaket zeigt, dass die Herausforderungen im Wohnbau in vielen Ländern ähnlich sind," and urged rapid implementation of similar reforms in Austria to make affordable building the norm.