Many local authorities are under considerable pressure to provide additional housing and new commercial space. At the same time, however, they are expected to limit land use and promote inner-city development. Against this backdrop, the Federal Government adopted a cabinet decision at the end of May (Link) Key points for a so-called ‘upgrade’ of the Building Code (BauGB) have been presented.

The draft reform builds on the ‘Housing Construction Boost’ scheme, which came into force at the end of 2025, but goes significantly further. The Building Code, the Land Use Ordinance and the Spatial Planning Act are to be comprehensively amended. The aim is to speed up and digitise local development planning procedures and to provide local authorities with new options for action in the areas of housing construction, climate adaptation and dealing with problem properties. This is currently still a reform proposal going through the legislative process; it is not yet law. The final decision by the German Bundestag is expected in the second half of the year. Nevertheless, local authorities should already be taking note of the planned changes. This is because the reform not only creates new scope for action but also places greater demands on the organisation of procedures, digital infrastructure and the legally sound balancing of urban planning considerations.

Housing development of overriding public interest

Housing construction is at the heart of the reform. In areas with a tight housing market, it is to be accorded overriding public interest in future. This is intended to give housing construction greater weight in planning considerations. This will make it easier for local authorities to designate land for new homes and to justify planning decisions in favour of housing development. However, this does not result in a general priority being given to housing construction. Local authorities must continue to properly identify and weigh up all public and private interests affected by housing development. These include climate protection, nature conservation and environmental protection, transport, social infrastructure and the interests of local residents. In practice, it is therefore crucial that local authorities clearly formulate their housing development objectives. The more clearly these objectives are reflected in housing and urban development strategies, the better the new opportunities can be utilised.

Faster urban planning

In addition, urban land-use planning is to be significantly accelerated. Planning procedures are, in principle, to be completed within two years – and within twelve months once the public consultation period has ended. The previous obligation to carry out a two-stage consultation process is to become merely a „discretionary provision“. In future, local authorities will be free to decide whether to involve the public at an early stage in the planning process. Similarly, the requirement for renewed public participation in the event of changes to a draft plan is to be limited to exceptional cases. Furthermore, it should be possible to exclude objections in subsequent appeal proceedings if they were not raised in good time during the planning process. Whether this will actually save time depends primarily on local practice. Delays often arise due to unclear responsibilities, incomplete documentation or late consultation with specialist authorities. Local authorities are advised to review their internal planning procedures: responsibilities, deadlines and coordination channels between urban planning, the environment, transport, property management and the legal department must be clearly defined. Early coordination can help avoid subsequent procedural delays, particularly in the case of complex projects.

However, the aim of speeding up the process must not come at the expense of legal certainty. Public participation remains an essential part of urban land-use planning, even if the rules governing it are to be made more flexible. In the case of minor planning amendments that are unlikely to give rise to conflict, it may make sense to dispense with early public participation. In the case of infill developments, major housing projects or schemes with significant impacts on the neighbourhood, however, it will often be advisable to identify potential conflicts at an early stage and explore possible solutions.

Digitisation of procedures

A key practical challenge will be the full digitisation of procedures. In future, urban land-use planning procedures are to be carried out using the XPlanung standard. In addition, a digital „procedure traffic light“ is planned, which will allow members of the public to view the status of a planning procedure. Whilst this will increase transparency, it requires reliable technical and organisational processes. Local authorities should therefore review their digital infrastructure and workflows in good time. It is not enough simply to make planning documents available online. Rather, clear rules are needed for publication, deadlines, the digital recording of comments and their transparent evaluation, as errors in the notification process or incomplete documentation can jeopardise the validity of a local development plan. Digitalisation therefore requires not only suitable software but also trained staff and workable internal standards.

Extension of the local authority’s right of pre-emption

The proposed measures to simplify the handling of problem and derelict properties are also of practical significance. Local authorities are to be able to exercise a right of first refusal more easily. Under certain conditions, this is also to be possible for buildings divided into flats, provided the local authority so stipulates in its statutes. Local authorities are also to be able to enforce repair orders more easily; expropriation remains an option as a last resort. These measures can help where vacant or derelict buildings are hindering the development of entire neighbourhoods. However, they will only work if the local authority also has a realistic plan for acquisition, regeneration and subsequent use. Before exercising these new powers, therefore, the financing, development objectives and feasibility of implementation should be clarified.

Climate action

Finally, the BauGB upgrade aims to strengthen climate-adapted urban development. Local authorities are to take greater account of risks associated with heat, heavy rain and flooding in their planning. The principle of „threefold infill development“ is intended to make it clear that infill development means more than just densification: Green spaces, open spaces and sustainable mobility must be taken into account from the outset. Particularly in the case of new residential neighbourhoods and infill developments, consideration should therefore be given to how infiltration, shading, soil de-sealing and the provision of open spaces can be safeguarded under planning law.

Overall, the BauGB upgrade offers local authorities new opportunities to take a more active role in shaping urban development. However, it does not automatically resolve staff shortages, land use conflicts or complex coordination processes. It will be crucial to integrate the new tools into a clear municipal strategy at an early stage and to organise procedures in such a way that speed and legal certainty go hand in hand.