The German Property Federation (ZIA), the leading association of the German real estate industry, has taken a position on the upcoming changes to the Federal Funding for Efficient Buildings (BEG). Aygül Özkan, Chief Executive of the ZIA, stated that the association is aware of the federal government's strained budget situation and considered the necessity of savings within the BEG to be foreseeable. The planned reduction in eligible costs across all user groups, as well as in the approaches for heating subsidies, is deemed comprehensible but also regrettable.
Medium-Term Financing of BEG Causes Concern
Particular concern within the ZIA is raised by the medium-term financial allocation for the BEG. According to current plans, the funding volume is set to decrease from approximately EUR 15.3 billion in 2025 to EUR 9.985 billion in 2030. This represents a reduction of approximately 35 per cent within a five-year period. A cut of 18 per cent is already projected between 2025 and 2027.
Özkan emphasised in this context that investments in the energy transition require long-term planning security and reliability. Even if the funding landscape must adapt to market conditions, it is essential that the BEG consistently has a sufficient funding volume. This volume should serve to generate broad and effective renovation impulses in the relevant market segments.
The federation acknowledges that the planned savings are broadly distributed and place responsibility on all user groups, including owner-occupiers and investors. The abolition of the speed bonus for owner-occupiers, for example, is considered logical, as the installation of heat pumps in private homes is increasingly becoming a market standard. Özkan further underlined that subsidies should not act as a deterrent to cost reduction incentives for manufacturers. The real estate industry, as a consumer of heating products, has a fundamental interest in ensuring that the costs for green technology products decrease through scalability and technological progress, irrespective of specific subsidy programmes.
Welcome New Funding Bonuses
The ZIA welcomes the introduction of a new bonus for measures on so-called Worst Performing Buildings (WPB) as well as the expansion of the bonus for serial renovation, particularly in the non-residential building sector. These measures are regarded by Özkan as sensible impulses, as they target the most energy-inefficient buildings in the existing stock and could achieve the greatest impact there. However, it is noted that, given the significant need for renovation in the building stock, the financial weight of these specific measures is currently considered too low to achieve a comprehensive effect.
