German Building Retrofit Rate Falls to Record Low in 2025

German Building Retrofit Rate Falls to Record Low in 2025

The share of buildings that have been energy‑retrofit in Germany fell further in 2025, reaching a new low. Data compiled for the Federal Association of Energy‑Efficient Building Envelopes (BuVEG) by B+L Marktdaten Bonn and reported by the Monday editions of the Funke media group show that only 0.67 % of roughly 19.5 million residential buildings were energetically upgraded in 2025. The rate was 0.69 % in 2024, 0.70 % in 2023, and 0.88 % in 2022. To hit the climate targets for the building sector, the association estimates that a yearly renovation rate of about two percent would be required.

“Renovation activity in Germany remains at a worrying level” said Jan Peter Hinrichs, managing director of BuVEG, to the Funke newspapers. “With an ambitious Building Energy Act, however, there is a chance to make energy‑efficient renovations more attractive and thereby reduce energy costs for the public over the long term”. Nevertheless, both private and institutional property owners continue to hesitate before investing in their buildings.

The downward trend is also evident in the more than two million non‑residential buildings. The renovation rate dropped to 0.92 % in 2025, from 0.95 % the previous year. Hinrichs pointed out that public facilities such as hospitals, schools and government offices are especially stalled. He suggested that a dedicated fund for infrastructure and climate neutrality could provide the breakthrough needed, calling for “not just a construction turbo, but an urgent renovation booster”.

The degree of stagnation in renovation is clear even when looking at simple, low‑effort measures. Frank Lange, managing director of the Window + Facade Association, explained that even the comparatively low‑effort window replacement sector remains at a low level. “If new windows are not installed, the entire building modernisation stalls” he said. “Hence, reliable conditions and planning certainty are crucial, both in financial support schemes and in the building modernisation law”.