The draft law for the modernization of urban development and spatial planning regulations (available in German only) sets critical initiatives for faster planning procedures, digital implementation, and increased housing construction. The commercial sector explicitly supports these goals. However, the DIHK warns: The reform falls short in essential areas. Over-privileging housing construction risks systematically displacing commercial and industrial plots—with long-lasting effects on jobs, investments, and the competitiveness of urban and regional areas. Only a balanced land governance approach, which equally considers residential and business requirements, can ensure sustainable urban and regional development.

The Government's Draft Law

On June 9, 2026, the German government introduced a draft law to modernize urban development and spatial planning regulations, reorganizing the Building Code, Land Utilization Ordinance, and Spatial Planning Act extensively. The core objective of the reform is accelerating housing construction: planning procedures should be shortened, digital participation processes introduced, and legal requirements for additional housing eased. Among other measures, the concept of "overriding public interest in housing construction" will be implemented in high-demand housing areas. The draft also contains provisions for expanded municipal pre-emption rights, a new sealing factor, and modifications in environmental impact assessments.

DIHK's Demands

Proactively Secure Commercial Areas:

• Embed mandatory protection of commercial and industrial areas into the Building Code and Spatial Planning Act, especially in high-demand housing areas
• Introduce commercial area monitoring as a compulsory instrument to enable fact-based decision-making

Legally Establish Enhanced Protection:

• Existing businesses must be able to modernize, expand, and adapt without losing their protection status or facing retroactive emissions requirements
• Explicitly recognize enhanced protection in the balancing catalog of Section 1 Paragraph 6 of the Building Code as a key urban planning concern and safeguard it through a new Section 216b
• Anchor the availability of commercial areas, economic resilience, and regional value creation as equal concerns in Section 1 Paragraphs 5 and 6 of the Building Code and Sections 2 Paragraph 2 and 13 Paragraph 5 of the Spatial Planning Act
• Restrict "overriding public interest in housing construction" to residential building purposes and avoid generalized privileging of related usage

Limit Pre-emption Rights Securely:

• Allow extending municipal pre-emption rights solely based on objectively ascertainable facts, not on predicted value enhancement effects
• Introduce clear proportionality criteria and expressly protect commercial usage

Significantly Expedite Procedures:

• Establish binding deadlines with approval or consent fictions
• Centrally anchor the effective legal and factual situation date regulation in the Administrative Procedures Act
• Simplify environmental and nature protection assessments without reducing protection standards

Revise or Eliminate Sealing Factor:

• Omit the new Section 19a Land Utilization Ordinance unless mandated by European law
• If introduced: ensure standardized federal calculation methods, digitalized procedures, recognition of existing data, and adequate transition periods

Modernize Noise Control Guidance:

• Fundamentally revise the Technical Noise Control Guidance to facilitate mixed-use practical implementation and protect existing businesses from tightened requirements due to nearby housing developments

Download

The DIHK statement dated June 9 is available here (only in German):