In Germany, a nation traditionally slow on the uptake of digital solutions in public administration, the adoption of online building applications marks a significant pivot. However, the journey towards a fully digital construction permitting process is progressing at a measured pace. Despite the fervent support from Building Minister Klara Geywitz, the nationwide acceptance of digital building applications is still in its infancy, with only around 1,100 applications received so far.
A year ago, Minister Geywitz heralded the launch of a central platform intended to streamline and simplify the building application process across Germany. Yet, as current data reveals, only ten federal states have engaged with this standardized digital permit initiative. Even within these states, participation among local building authorities is fragmented. Of approximately 691 lower building supervisory authorities (UBABs) in these states, only 582 have registered to participate, and a mere 235 are actively using the system.
Anecdotes abound within the industry about architects submitting their building applications in triplicate in paper and in digital form - with a USB stick stuck onto the paper applications to ensure it doesn't somehow get lost at the office - which appears to happen quite frequently. Submitting PDFs of the application by email is - unfortunately - not permitted. So… there's still a long way to go.
This tepid rollout can partly be attributed to the decentralized nature of building law, which is primarily managed at the state level, allowing for variances that complicate nationwide standardization. The state of Mecklenburg-Vorpommern has taken a proactive approach with its "one-for-all service" (Efa service), attempting to centralize and standardize the process for broader application. However, other states like Bavaria and Berlin have opted for their individual solutions, reflecting a broader trend of reluctance or logistical challenges in adopting a unified approach.
Regional variations and innovations
Each state's approach to digital building applications varies significantly. For example, Bavaria, which launched its digital application process in 2021, now sees over a thousand processes handled digitally each month. Similarly, Hamburg has mandated digital submissions since early 2024, promoting efficiency and reducing bureaucratic overhead. Yet, despite these advancements, the total number of digital applications remains a drop in the ocean compared to the 220,000 building permits issued annually across Germany.
For real estate investors and developers, the slow progression towards digitalization in building applications presents both challenges and opportunities. The eventual widespread adoption of digital permits promises faster processing times, reduced administrative burdens, and potentially lower costs. However, the current patchwork of systems means that navigating the permitting process in different regions can be unpredictable and complex.
Investors should be aware of the varying stages of digital adoption across states and plan for potential delays or inconsistencies. Moreover, staying informed about each state's system and upcoming changes is crucial for timely and efficient project planning. By understanding these dynamics, investors can better strategize their developments, anticipate bureaucratic hurdles, and optimize their operations in Germany's evolving real estate landscape.
While Germany's march towards the digitalization of building applications is undeniably slow, it is also inevitable. The real estate sector must prepare for a future where digital processes are the norm, bringing about significant improvements in efficiency and transparency. In the interim, REFIRE is keeping an eye on how the industry is navigating a landscape still dominated by traditional - not to say archaic - methods, making adaptability and informed decision-making more important than ever.
