What increases construction costs besides specifications
Energy requirements are not the only price drivers when it comes to higher construction costs. A report prepared by the Construction Cost Reduction Commission back in 2015 additionally points to the significantly higher requirements for living comfort (non-energy-related higher requirements) in recent years.
Construction costs, an eternal cliché? Every year, 400,000 new apartments are needed in Germany. In 2017, just 300,000 new apartments were completed. There are many reasons why the number of new buildings is too low. The rapid rise in construction costs in recent years could be one of them. But why are costs skyrocketing? Are the energy standards for new buildings, which have been required by law since 2014 and were added to again in 2016 (EnEV 2016), the main reason, as many players in the construction industry claim? A new report by the Institute for Technical Building Equipment commissioned by the German Renewable Energy Federation (BEE) comes to a different conclusion.
The fact is that building costs increased by 36 percent between 2000 and 2014 (figures from ARGE Kiel). However, only 6 percent of the higher costs can be attributed to building energy law, he said. "Building has become expensive, but the shares that energy efficiency and the use of renewable energies have in this price increase are very small," summarizes Bert Oschatz, ItG professor and co-author of the study.
Several factors are causing huge cost increases
The study also points out that the additional costs for achieving the EnEV 2016 standard depend on several factors. These include the decision as to whether plant engineering or structural measures are selected for energy savings and which plant concept is chosen for heating and ventilation. Particularly in the case of the latter, there is always a cost-optimized variant that makes it possible to reduce the additional costs. In addition, the costs often depend on the know-how of the responsible planners and architects. Bert Oschatz pleads for appropriate qualification instead of criticizing the EnEv 2016 standards. He even advocates that they be raised further.
So how can the cost drivers be identified in concrete terms? In a 2017 report by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), a large part of the blame is laid on the lack of available building land. Firstly, there is not enough of it, and secondly, it is offered at very high prices, which are constantly rising. However, the experts see the largest growing cost factor in the general rise in prices. This includes, for example, the higher real estate transfer tax or the increase in wages. In the view of the experts, higher requirements that are not energy-related are also part of the cost increase.
In a report prepared by the Construction Cost Reduction Commission back in 2015, additional reference is made to the significantly higher requirements for housing comfort (non-energy-related higher requirements) in recent years. The standard has been upgraded so that higher market-driven, as well as equipment features driven by subsidy guidelines, could be identified in new residential construction in Germany. These include improved sound insulation, the installation of elevators, underground parking spaces and outdoor facilities with a higher quality of life.
An overview of the cost drivers according to BEE:
Increase in construction costs between 2012 and 2014 by 36 percent overall, of which:
- 27 % General increase in costs
- 6 % Specifications by the EnEV-2014
- 3 % non-energy-related higher requirements
Keeping construction costs down - a practical example
An example of how construction costs can be kept low regardless of external factors is provided by Vonovia. The nationwide housing company is not only a landlord, but also builds new apartment buildings with apartments for rent.
In order to meet the requirement of creating attractive living space that can be rented at moderate prices, the lowest possible construction costs are an important lever.
Vonovia mainly builds new housing in existing neighborhoods. These new developments are built on land that is already in the housing company's portfolio. This means that the cost factor of purchasing new land can be avoided.
The housing company focuses on modular new construction and has developed a construction kit that can be individually assembled and adapted to the respective project. From the family apartment to the barrier-free single apartment suitable for the elderly, the construction of different types of apartments can be realized.
The modules are delivered to the construction site and assembled on site. This means a further cost advantage because, firstly, there is standardization of the modules and, secondly, only 35 percent of the work takes place on the construction site.
Outlook
The topic of building cost increases always stimulates public and political debates. Even though current energy standards only account for a smaller part of the increase in construction costs and there are good examples of how major cost drivers can be circumvented, calls for a new Building Energy Act (BEG) are becoming louder again. There was already a draft in 2017, but it was rejected.
Currently, the German Sustainable Building Council (DGNB) has a Discussion proposal published what a new JIT could look like.
The following four core requirements form the basis for a new Building Emissions Act 2050:
- The target figure should be CO2 emissions instead of primary energy demand.
- The assessment should be based on absolute CO2 emission limits instead of theoretical reference buildings.
- If targets are not met, a CO2 levy must be paid.
- Real measured consumption data must be used as the basis for all assessments, specifications and control mechanisms.
It remains to be seen whether this new approach will make it possible to reconcile affordable construction and climate protection even better in the future.
