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Legal hurdles block housing projects in commercial zones

Monday 24th August 2026 on 05:15 in Bavaria

Bavaria, building law, housing

Housing shortages are prompting Bavaria to consider building homes in commercial zones, but legal hurdles continue to block projects, BR reports. A study cited by the broadcaster says Germany is short of 1.4 million homes.

Residential and commercial areas are normally kept strictly separate to protect residents from the noise and odours produced by businesses. Exceptions are allowed for business housing, such as when a florist lives above the shop.

The Free State of Bavaria, architects and municipalities are nevertheless trying to develop housing in commercial areas. Projects exist across Bavaria, but many have failed because of requirements in the Federal Land Use Ordinance.

In Abensberg, a planned project beside a medical centre would have provided assisted living. It has been put on hold even though investors are available, said Uwe Brandl, president of the Bavarian Association of Municipalities. The project failed because current building law classifies it as ineligible for approval, he said.

The main difficulty is that residents’ health protection is given high priority. Businesses could therefore lose court cases over complaints about noise or emissions.

Franz Xaver Peteranderl, president of the Bavarian Crafts Association, said there had already been cases in which residential areas were built close to commercial sites and residents subsequently sued businesses. He called for courts to consider which side was there first. Otherwise, he warned, crafts businesses could permanently lose commercial space.

Brandl urged policymakers to reduce individual protection requirements. People should be expected to tolerate certain noise emissions within reasonable limits, he said. Warning prospective residents about the conditions of living in a commercial zone could also help.

In response to a BR24 inquiry, the Bavarian state government said it wanted to ease the existing rules and allow a mix of non-disruptive businesses and housing. This would make it easier for companies to create homes for employees and for existing buildings to be converted. The federal government has not yet implemented Bavaria’s proposals.

A project in Wörthsee, a municipality in Upper Bavaria, shows how commercial and residential uses can be combined. A supermarket on the edge of the municipality has almost 20 small flats above it in a modern wooden structure. A residential development is also planned on a neighbouring construction site.

The complex was initiated by the municipality and designed by Munich architecture professor Christian Schühle. Building homes above the supermarket uses the land twice and offers a more space-efficient way to build, Schühle said.

The supermarket has had to limit its impact on residents. Trucks have fixed delivery times, and shopping trolleys must be made of plastic rather than metal to reduce noise. A special noise assessment was also used to design the flats’ windows and walls to protect residents from external noise.

The project was planned as a single complex, which avoided some difficulties that arise when homes are added to existing commercial areas. Its structural elements were designed to support the flats from the outset. Existing commercial halls may not be strong enough to carry additional floors, Schühle said. Providing enough parking spaces can also be a challenge, although Wörthsee was able to build an underground car park beneath the supermarket.

Existing commercial sites could nevertheless be supplemented with housing, potentially easing the housing shortage.

Source 
(via BR)