Saxon Craftsmen Push for Swift Construction and Fewer Rules in the Building Sector
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Venerable Saxon craftsmen are clamoring for a speedier authorization process and reduced regulations as they grapple with issues plaguing the construction industry. "The predicament remains marked by a dearth of projects, exorbitant expenses, and subsequently inflated construction costs," says Uwe Nostitz, Head of the Saxon Crafts Association, based in Dresden. Addressing the ongoing housing crisis, it's imperative to rejuvenate the construction sector promptly.
However, the issue transcends government monetary support. "It's about speed and substantially less bureaucracy," Nostitz stresses. Streamlining construction processes, reducing red tape, tailored incentives, and optimizing residential construction should be top priorities. The main focus is on expediting planning and approval procedures. The Crafts Association urges against adding to construction costs with additional rules and regulations. "Rather, we should reform and quicken construction-related processes."
Shrinking approval numbers and revenue
According to the Crafts Association, about 10,000 new apartments were approved annually in Saxony from 2018 to 2022. However, a downward trend has since materialized, with 8,872 in 2023 and 7,133 in 2024. The number of buildings sanctioned for public and commercial use also saw a decline, from approximately 1,500 per year up to 2021 to around 1,000 in the recent year. As a result, revenue growth over this period plummeted from around 21 percent to approximately 3 percent, notwithstanding the escalating construction costs.
Political ambitions at federal and state levels
In terms of federal action, the Crafts Association demands easy-to-manage funding programs, tax relief, and bureaucracy reduction for clients and builders. "With reduced real estate transfer tax and exemptions from property tax, potential builders could be offered investment incentives." Additionally, the craft industry longs for relief from excessive energy efficiency regulations for new constructions and renovations of existing buildings.
The construction sector has high hopes for the revision of the Building Code, which seeks to empower municipalities in tight housing markets to construct apartments more easily. Yet, the crafts association cautions against disenfranchising craftsmen and small businesses if inner-city commercial edifices are repurposed for residential properties.
- To alleviate the construction sector's challenges and address the ongoing housing crisis, the Saxon Crafts Association suggests a focus on streamlining community policies, particularly employment and business policies, aiming for less bureaucracy and expedited planning and approval procedures.
- In addition to federal support, the Crafts Association advocates for finance-related policies that include easy-to-manage funding programs, tax relief, and bureaucracy reduction to incentivize potential builders, and for the relaxation of energy efficiency regulations, as excessive rules add to construction costs.
