Residential construction turbo: more living space on existing properties

Since October 30, 2025, new regulations on the creation of living space have been in force in the German Building Code (BauGB). At the heart of the changes is the so-called housing construction turbo. In particular, the legislative package facilitates new builds, extensions, redensification and conversions in inner-city locations. The changes can also noticeably speed up the approval process for residential construction projects. As a result, companies in the housing industry have completely new scope for activating previously unused properties and intensifying existing building uses.

For whom are the new regulations relevant?

With the “housing construction turbo” and the accompanying regulations, approval authorities and local authorities can now quickly and efficiently approve new residential construction projects without having to draw up or amend development plans in advance – even on plots that could previously not be used for residential construction, or only to a limited extent, on the basis of existing development plans or due to other planning restrictions. This opens up new opportunities for project developers, housing cooperatives, property developers and investors who want to construct or extend buildings for residential purposes. The possible use of existing plots of land eliminates costs for land acquisition and development. At the same time, additional living space is created in sought-after, stable value locations – with noticeably higher profitability.

Deviations from development plans and from the insertion requirement possible

The new building planning regulations create far-reaching possibilities for deviating from existing building planning regulations:

• Exemptions from stipulations in the development plan, for example with regard to the type and extent of building use (e.g. GRZ, GFZ, height)
• Deviations from the integration requirement in unplanned inner areas, provided the project serves residential purposes and neighboring interests and public interests are safeguarded – includes, for example, the conversion or extension of former office buildings for residential use
• Projects in outdoor areas are possible if they are adjacent to existing buildings (maximum distance of 100 m to the edges of settlements)

The special feature of the new regulations is that they also allow projects to be approved that are not compatible with the previous urban planning principles. Unlike in the past, it is no longer necessary to draw up new or amend existing development plans, which leads to a considerable acceleration of the approval process.

The role of the municipality and the procedure

An essential prerequisite in all cases is the consent of the municipality. This safeguards the municipal planning sovereignty. There is no entitlement to municipal approval. Dialogue with the local municipality is therefore essential for the utilization of the new regulations. The latter can make its approval dependent on conditions that can be regulated by urban development contracts.

Risks, audit requirements and opportunities for practice

In addition to discussions with the local authority, communication with neighbors is still of great importance. This is because all new deviation options require the assessment of neighboring interests. Particularly in the case of redensification projects that exceed the actually permitted level of building use in relation to the existing development, this can have a negative impact on the neighboring buildings. The new regulations do not affect the neighbors’ ability to defend themselves, for example due to oppressive effects or unreasonable shading. The conclusion of neighbor agreements can be a means of avoiding potential conflicts at an early stage.

The options for deviating from existing development plans and for projects in outdoor areas apply if, after a rough assessment, no additional significant environmental impacts are likely to be expected. Should a project have such effects, a strategic environmental assessment is required. In order to avoid unnecessary expenditure of time and money, appropriate compensation measures for potential environmental impacts must be provided for at an early stage as part of the project planning.

Procedure for exploiting the new possibilities

The following rough sequence of steps can be derived from the aforementioned framework conditions and challenges for project developers:

• Identification of properties that could potentially be considered for utilization of the new scope
• Consideration of possible residential construction measures on these properties, be it new buildings, extensions, conversions or changes of use
• Examination of the extent to which the planned project appears to be feasible in principle using the new deviation options
• Contacting the municipality to sound out its willingness to grant municipal consent; negotiations on conditions for this and talks on urban development agreements
• Subsequent or parallel discussions with affected neighbors who could be disadvantaged by the granting of the deviation
• Coordination with the building supervisory authority on the specific approval requirements; under certain circumstances, support for the authority in the rough assessment of the environmental impact with its own expert reports etc. and planning of compensation measures if significant environmental impacts would otherwise be expected

Conclusion: Take action now

Companies should promptly check which projects can benefit from the extended usage options. On the one hand, the time limit on the “housing construction turbo” until the end of 2030 and the municipal scope for action require swift action. On the other hand, discussions with municipalities, neighbors and building supervisory authorities require thorough legal preparation in order to make maximum use of the existing scope.

We are happy to support you in the legally compliant design, accompany you in the dialog with authorities and neighbors and help you to make the best possible use of the new scope for your projects.

Read also: What the “construction turbo” means for local authorities and building supervisory authorities