The German Federal Ministry of Housing, Urban Development and Building, led by Minister Verena Hubertz (SPD), is initiating a program to accelerate the construction of previously approved housing projects that have yet to commence. A key component of this effort involves the temporary reinstatement of subsidies for buildings meeting the EH55 energy efficiency standard.
The ministry anticipates that this measure will provide a rapid economic stimulus to the housing sector. According to a ministry document obtained by “Handelsblatt”, the goal is to send a clear market signal, demonstrating the viability of investment in new construction.
The decision to reintroduce EH55 subsidies fulfills a commitment outlined in the governing coalition agreement, aiming to revitalize the construction of new homes. Many projects, originally planned under different financial conditions, have become economically unviable and subsequently stalled.
This year, a minimum of €59 million will be allocated from the ministry’s new construction subsidy program. The program is slated to continue beyond 2026, with significantly increased funding anticipated.
Previously discontinued to encourage the construction of more climate-friendly buildings, the EH55 standard’s reintroduction reflects the need to address delays in achieving national climate targets. Failure to meet these targets could potentially result in substantial financial penalties for Germany from the European Union.