Lower standard temperatures in bedrooms, reduced impact-sound insulation, or thinner walls—in the future, it may be possible to deviate from established “comfort standards” in residential construction, thereby cutting costs. On Monday, the Federal Ministry of Justice presented a draft law aimed at amending construction contract regulations to allow for such changes. According to the Ministry, experience from pilot projects indicates that construction costs could be reduced by approximately 10 to 15 percent through this simplified approach to building.
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“Building in Germany must become simpler and more affordable, because we need more accessible housing,” stated Federal Justice Minister Stefanie Hubig (SPD). The planned legislation paves the way for “building without expensive extras.” Minister of Construction Verena Hubertz (SPD) also explained that the proposed law “gives developers, construction companies, and buyers the freedom to forgo unnecessary frills.” Hubig emphasized that there would be no compromises regarding safety or healthy living conditions.
At the heart of the planned legislation for “Building Type E” (Gebäudetyp E) is construction contract law—specifically, the statutory provisions within the German Civil Code (BGB) that govern the erection of structures. The Ministry of Justice emphasized that the initiative does not concern public law requirements or building regulations.
The Ministry pointed to feedback from industry practitioners, noting that those involved in many construction projects would prefer to build more simply to reduce costs, but are often hindered by legal uncertainties. Construction companies and developers fear that opting out of certain comfort standards could subsequently lead to legal disputes.
Under the proposed framework, parties to a construction project will be able to explicitly agree to construct a building as “Building Type E”—with the “E” standing for einfach (simple). In such cases, compliance with mandatory statutory regulations will suffice. If the project deviates from standard comfort specifications, a simple notification in text form—such as an email—will be sufficient, according to the Ministry. There is no requirement to provide detailed information regarding potential consequences or risks.
A key-points paper was presented by the Federal Ministry of Justice and the Federal Ministry for Housing, Urban Development and Building in November 2025. Following a consultation process with stakeholders, the draft now includes a provision authorizing the federal states (Länder) to establish minimum technical building standards. The Ministry further explained that disclosure obligations toward tenants and buyers have been kept “streamlined,” noting that existing laws governing sales and tenancies already provide sufficient protection for both groups.
The GdW, the umbrella organization for the German housing industry, questions precisely this: “Housing companies are expected to build more easily, yet they continue to bear the risk that this standard could be challenged within the context of a tenancy.” The draft, they argue, is “disappointing and inadequate”—at best, merely a “basis for discussion.” The GdW has called for “fundamental” revisions.
Federal states and industry associations now have until November 13 to submit their comments. The legislation could come into force “no earlier than mid-2027.” It has been in the works for some time; in November 2024, the then-Minister for Housing, Klara Geywitz (SPD), presented a draft for the “Building Type E” (Gebäudetyp E) legislation.
Author: AFP – ilo/oer – Translated by Blackout News
Sources: AFP Press Portal