The German government has responded to the high demand for the Efficiency House 55-Plus subsidy programme and has made additional financial resources available. This measure aims to activate the so-called construction backlog by supporting projects that have already been approved but not yet realised. The budget of EUR 800 million originally allocated for this funding programme was, according to forecasts, expected to be exhausted before the end of the year.
Since the launch of the funding in December 2025, a total of approximately 52,100 residential units had been supported by the cut-off date of 5 October 2026. The total volume of loans and grants committed during this period amounts to around EUR 4.9 billion. These figures highlight the significant market response to the conditions offered and the necessity of continuing the support.
Federal Minister Emphasises Success and Necessity
Verena Hubertz, Federal Minister for Housing, Urban Development and Building, commented positively on the progress of the funding programme. She stressed that the EH55-Plus funding was a success and generated great demand. Approximately 52,100 homes that already had planning permission, but were not yet in the realisation phase, would now be implemented. Given the significantly increased demand in recent months, the provision of additional funds was necessary. Developers with valid planning permission can continue to plan with this support. The funding will be available for use until the end of the year.
Key Aspects of the Funding
The funding criteria for the programme are clearly defined and target new build projects as well as the initial acquisition of residential and non-residential buildings that achieve the Efficiency House or Efficiency Building 55 standard. A core requirement is that heat generation in these buildings must come entirely from renewable energies. This underscores the focus on sustainability and energy efficiency within the programme.
- —New build and initial acquisition of residential and non-residential buildings meeting the EH55 standard are eligible for funding.
- —Valid planning permission must be available at the time of application.
- —Interest-subsidised KfW loans of up to EUR 100,000 per residential unit are offered.
- —Local authorities can apply for a direct grant of 7.5 per cent from KfW.
Applications for the EH55-Plus funding can continue to be submitted as long as the increased funding has not been fully spent. The deadline for submitting applications to KfW is 31 December 2026. This provides developers and investors with a reliable planning basis for their sustainable construction projects and underlines the government's ongoing commitment to strengthening housing construction with ecological considerations.
