German government presents draft law for simpler, cheaper building under Gebäudetyp E

A voluntary option in building contracts

The federal government presented a draft bill on Monday, 26 October 2026, that would let construction parties agree to simpler standards. According to a draft from the Federal Ministry of Justice (BMJV), changing construction contract law would allow homes to be built without certain comfort standards, which would make building faster as well. The option is voluntary. The simplified rules apply only when the parties to a project expressly agree on the new 'Gebäudetyp E-Basisstandard', and otherwise the existing, higher standards remain in place. The law does not alter binding state requirements on fire protection, structural safety or lighting.

Justice Minister Stefanie Hubig (SPD) said the bill was meant to address the housing shortage.

“Building in Germany must become simpler and cheaper. Because we need more affordable housing.”

Building Minister Verena Hubertz (SPD) made the same case in cost terms.

“Every euro we do not put into superfluous standards is a euro for more affordable housing.”

What can be dropped, and what cannot

The ministries say the savings come from comfort features rather than safety. Examples include less impact sound insulation in single-family homes, lower ceiling heights and no towel dryer in the bathroom. Fire protection, structural engineering, ventilation and lighting are excluded, and buildings are to be built to the legal minimum, not beyond it. Under current rules, a buyer can expect the usual standard if nothing else has been agreed, and that standard has risen in recent years. Planners and firms avoid departing from it because they fear being held liable, and builders fear lawsuits from buyers if they deviate from established norms.

Coalition doubts and open questions

The CDU/CSU spokesman on building policy, Jan-Marco Luczak, said on Monday that he was not yet convinced the new contract type would work in practice. He warned of complicated disclosure questions, documentation duties over the costs saved and liability risks.

“I am not yet convinced that this will work with the new contract type proposed by the Justice Minister. It must be expressly agreed.”

The coalition partners also disagreed on details, including whether Gebäudetyp E should become the 'new normal' in building or a special category within contract law. Hubig had announced in early July 2026 that the draft would be presented that month, but it only arrived now. Construction and real estate associations and several German states had pressed the government for more speed.

Timeline and next steps

Justice and building ministries presented a joint outline paper in November 2025. The draft now goes to the states and associations, which can submit statements until 13 November 2026. Hubig's ministry describes the next step as coordination within the federal government, and the bill must then pass the parliamentary process, where Luczak said it needs close scrutiny.

Costs and rents in practice

The 10 to 15 percent figure comes from pilot projects, which the ministries have evaluated. Experts cited by ARD put the expected saving at about ten percent. In Munich, the cooperative 'Das große kleine Haus' in Schwabing is one of 19 pilot projects for Gebäudetyp E. Its architect, Rainer Hofmann, said the building has fewer power outlets per room and less soundproofing than usual, and the savings are passed on to tenants. Planned rents there are between 12.20 and 13.50 euros per square metre, and the building is almost finished.

Low estimate10%

High estimate15%

Low estimate

10 %

High estimate

15 %

Data from the article text