Hello everyone,
A quick question for you: What do you think about the new standards for new construction and what they might mean for all of us? It seems that the requirements for new buildings are increasing significantly. Policymakers are placing more emphasis on energy efficiency and sustainability, which of course also has an impact on construction costs. This could have considerable consequences for many of us who are thinking about building a new house or purchasing a property. On one hand, it’s good that we are building in a more environmentally friendly and sustainable way, but on the other hand, this might also push property prices even higher. What are your thoughts on this? How do you think these new standards will affect the real estate market, and should we as future homeowners or buyers pay attention to anything in particular?
Looking forward to your opinions! 😉
A quick question for you: What do you think about the new standards for new construction and what they might mean for all of us? It seems that the requirements for new buildings are increasing significantly. Policymakers are placing more emphasis on energy efficiency and sustainability, which of course also has an impact on construction costs. This could have considerable consequences for many of us who are thinking about building a new house or purchasing a property. On one hand, it’s good that we are building in a more environmentally friendly and sustainable way, but on the other hand, this might also push property prices even higher. What are your thoughts on this? How do you think these new standards will affect the real estate market, and should we as future homeowners or buyers pay attention to anything in particular?
Looking forward to your opinions! 😉
N
nordanney9 Sep 2024 23:27thangorodrim schrieb:
Why doesn’t Vonovia just build smaller and without KNX?You have to completely separate owner-occupied homes from rental apartment construction.Owner-occupied homes only need to be affordable. Rental housing, on the other hand, must be profitable.
And for large housing companies like Vonovia or LEG, which focus on providing affordable housing with average rents of €6–7 (roughly $6.50–7.50) per square meter, they can’t build as cheaply as needed in their core markets, such as the Ruhr region.
Even in social housing (in terms of quality), you have to expect construction costs of nearly €3,000 per square meter (around $290 per square foot). To make these apartments affordable, rent generally has to be well above €10 per square meter (about $11 per square foot) — which is a problem in areas like Duisburg Marxloh, where residents can only afford €3.80 to €4.95 (around $4–5.50) per square meter.
The decision is basically digital — either do it or don’t.
I’ve had proposals from a housing company for new builds in Cologne. To cover financing and still generate a return (we’re talking about returns just over 3% after all costs and financing, so it’s not a path to wealth), rents MUST be set at €15 per square meter (about $16 per square foot).
Private homeowners don’t care about returns. Someone building their own home might spend €750,000 (about $800,000) and receive rental income of €2,000 per month (about $2,100). That’s a 3.2% yield BEFORE taxes, management, maintenance, vacancy losses, etc.
They can afford that because it’s for themselves, and quality of life can’t be measured by return on investment.
Vonovia and similar companies can’t do that — they would need rents of around €5,000 (about $5,300) per month or more, which no one can pay. That’s where the problem lies. It doesn’t matter if you offer 40 m² (430 ft²) apartments or 200 m² (2,150 ft²) apartments at €15 per square meter — nobody will rent them.
It’s somewhat comparable to electric cars. How many ordinary people can or want to buy a "green" car costing $80,000? The market simply isn’t there.
C
chand198610 Sep 2024 05:20nordanney schrieb:
Nobody is going to rent those.
You can compare it a bit with electric cars. Which average person can or wants to buy a "green" car for 80,000 (USD)? There simply isn’t a market. But electric cars are actually becoming cheaper.
Will living space ever be produced much more cheaply again?
And if the answer is "no," how do we solve this problem?
N
nordanney10 Sep 2024 07:08chand1986 schrieb:
Will living space ever be produced significantly cheaper again?And that brings us back to the beginning of the thread...nordanney schrieb:
For example, the thickness of the concrete ceiling (sound insulation), number of electrical outlets, lowering the bathroom temperature from 24 to 20 degrees Celsius (savings on wall heaters), wooden floor structures possible without screed, and other points. Deviations from generally recognized technical standards are not necessarily construction defects.
These are the main areas.Besides that, there is also the possibility of modular construction (there are already various types of prefabricated houses). However, acceptance of this is very low because people immediately associate it with large panel buildings.So the answer is: Yes, but mainly for multi-family residential buildings. Standard single-family homes will not become significantly cheaper.
B
Buchsbaum06610 Sep 2024 07:32nordanney schrieb:
Another option would be serial construction (there are already various types of prefabricated houses). However, acceptance is very low because everyone immediately thinks of large panel buildings.Well, the concept of panel construction in the former East Germany was not actually that bad. The apartments had layouts that met modern standards, included a balcony, and were space-saving as well as very affordable to build. Regarding the plot of land.
Infill development in city centers using panel construction existed, as well as detached so-called cube houses. Six floors with four apartments each on less than 200 sqm (2150 sq ft) of land area.
The only problem was thermal insulation and relatively thin wall thicknesses.
Unfortunately, today large residential blocks, especially solid masonry ones, are still being demolished with government demolition incentives instead of being renovated.
It would have also been possible to dismantle the buildings and reconstruct them where there is a housing shortage. Insulation and new windows would no longer be an issue.
I currently rent out for 4.50 - 5.50 per square meter. However, government regulations are making it increasingly difficult for me to maintain this price. I will not be able to avoid significant rent increases.
The requirements of the authorities must also be considered. They only cover capped heating costs and limited rents. It is therefore becoming increasingly difficult for people with low incomes to find affordable housing.
It will become critical if the German welfare state collapses under its own weight. Supporting millions of refugees and social benefit recipients on such a scale will not be sustainable in the long term given a shrinking economy and declining tax revenues.
N
nordanney10 Sep 2024 08:03Buchsbaum066 schrieb:
Well, the concept of prefabricated panel buildings in the former GDR wasn’t that bad after all.Today, however, hardly anyone wants to live in panel buildings. Acceptance versus quality. Buchsbaum066 schrieb:
The government requirements are making it increasingly difficult for me to maintain this price.What kind of requirements have you been given? Buchsbaum066 schrieb:
I can’t avoid significant rent increases.Well, you are not allowed to raise rent excessively.B
Buchsbaum06610 Sep 2024 08:21nordanney schrieb:
Well. You are not allowed to increase the solid construction though.Why not? A 20 percent increase seems quite significant to me.
nordanney schrieb:
Nowadays, nobody really wants to live in prefabricated panel buildings. Acceptance versus quality.I do own a solidly built rental property, but with a layout typical of panel buildings. It’s in high demand and fully rented. Visually not the most attractive building, but with a great view and south-facing balconies. There are still fans for this type of housing.