Building projects in cities under the microscope

February 2024

The process of creating living space in urban centres is hampered by bureaucratic obstacles. Due to declining construction figures and rising population figures, the pressure on the urban property market is growing, which requires efficient solutions.

The Federal Office’s statistics point to a decline in the vacancy rate, which is attributable to declining construction activity and growing population density. This leads to a significant supply gap of around 10,000 flats per year. This shortage is becoming increasingly noticeable in urban areas in particular, which emphasises the urgency of swift measures to prevent the housing shortage from worsening.

The demand for urban densification in accordance with spatial planning laws poses major challenges for property developers. Stricter regulations and an excess of bureaucratic hurdles make the construction process more complex and lead to rising costs. Appeals and lengthy legal procedures delay construction projects and increase rents.

Various measures are needed to facilitate residential construction in urban areas: Structure and utilisation plans must be revised and obstacles to densification removed. By abolishing or adapting utilisation ratios and boundary distances, more living space can be created and green spaces preserved.

Furthermore, building regulations for high-density development should be simplified. Outdated noise protection regulations, regulations on shadow impact and aesthetic regulations must be modernised or abolished. A reduction in objections and an acceleration of legal procedures are necessary in order to realise construction projects more efficiently and relieve the housing market.

One promising solution could be to simplify urban construction planning and at the same time optimise public participation in order to improve the realisation and acceptance of projects. This would not only shorten construction times, but also reduce costs and ultimately create affordable housing.

A balanced combination of economic efficiency and social responsibility is the key to the healthy development of the property market. By focussing on innovative building concepts, sustainable development practices and forward-thinking urban planning, cities can continue to grow and flourish without compromising quality of life.

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