The German housing market is reaching physical limits: available and affordable building land is becoming scarce. Architects and general contractors are therefore turning to densification and conversion of existing structures.
Extensions of existing buildings, conversions of commercial real estate, and interim uses on leasehold land are now routine. Some federal states already allow tiny houses on remaining land to increase land efficiency.
For skilled trade businesses, this means changed requirements: renovations require different processes than new construction, and ongoing uses must be taken into account. At the same time, new supply chains are opening up – from asbestos disposal to facade renovation with building extensions.
The obstacle remains building regulations. Different regulations between federal states, monument protection, and noise control requirements slow down projects. Without harmonizing approval processes, densification will remain what it is today: detailed work rather than a mass market.
