Bavaria Plans Regulatory Overhaul to Revive Struggling Construction Sector

State government proposes easing building standards and calls for federal tax reforms to address housing shortage and economic concerns.

Bavarian officials, including Markus Söder, announced plans to reduce construction costs by revising regulations on noise, building standards, and fire safety requirements.
The state aims to simplify and speed up approval processes through digitalization and the use of artificial intelligence in construction administration.
The construction industry in Bavaria has faced declining demand, with building permits dropping by 23% from 2022 to 2023, worsening the housing crisis.
Söder urged the federal government to abolish inheritance taxes on family homes, lower property transfer taxes, and expand housing subsidies to stabilize the sector.
Industry representatives highlighted the need for reduced bureaucracy, streamlined standards, and increased financial incentives to address rising costs and labor shortages.