There is positive news with regard to a sustainable real estate sector: On March 12, the EU Buildings Directive was adopted and the next big "step towards a climate-friendly building sector" was taken with the vote on the Energy Performance of Buildings Directive (Federal Minister Klara Geywitz).
The adopted directive for greater energy efficiency in buildings aims to reduce energy consumption by 16% by 2030 compared to 2020. However, this will not result in an obligation to renovate residential buildings in order to avoid social rejection, according to Geywitz: "Climate protection needs acceptance. We have prevented mandatory refurbishment for single and multi-family homes. A building is not something abstract, but the home of people."
In addition, the budget resolution for 2024 has already laid the foundation for environmentally friendly housing. Section 25 is accompanied by three new funding programs:
A new program is "Climate-friendly new construction in the low-price segment - residential buildings with small to medium-sized units", which provides interest rate reductions for affordable housing with little living space. In addition, the purchase of old buildings in need of renovation is now being promoted through the "Young buys old" program. Vacant commercial buildings that are converted into living space are also to be promoted through the new "Commercial to residential" program.
Some programs have been increased and improved financially, such as the "Young Housing " program, which is intended to promote housing for trainees and students. In addition, the terms of urban development funding are to be adjusted in line with demand and local authorities are to be supported in drawing up heat plans. The group of eligible applicants for the "Home ownership for families" subsidy, which has been in place since June 2023, has been expanded and the term of the low-interest loan extended.
With regard to the EU Buildings Directive, we will have to wait and see: "It is now important that the procedure for amending the EPBD is completed at EU level. Following the European Parliament's decision, this still requires the Council's approval. Only then will the specific wording be finalized and the two-year deadline for implementation will begin to run." (Federal Minister Klara Geywitz)
Let's stay tuned to see how the funding landscape for new builds develops - we'll keep you up to date.
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