The German Property Federation (ZIA) has welcomed the federal government's decision to increase funding for the EH55-Plus programme. This measure represents the second adjustment to actual demand, following an extension of the funding period in June. The initial budget of EUR 800 million for EH55-Plus funding is almost exhausted, according to the KfW (Kreditanstalt für Wiederaufbau). By 5 October 2026, approximately 52,100 residential units had been funded under this programme.
The Federal Ministry for Housing, Urban Development and Building (BMWSB) has announced the provision of additional funds. The funding is set to expire on 31 December 2026. Interest-subsidised loans of up to EUR 100,000 per residential unit can still be claimed via the KfW programme "Climate-Friendly New Construction". A central condition for this is that 100 per cent of the heat generated comes from renewable energies.
Focus on Demand and Planning Security
Iris Schöberl, President of the ZIA, emphasised that the almost complete utilisation of the initially provided funds underlines the significant interest and real demand in housing construction. Projects are therefore ready for construction and awaiting realisation. She assessed the federal government's approach as pragmatic policy that specifically supports housing construction. For existing construction-ready projects, planning security remains a decisive factor.
The current increase in funds continues a course that began in May. At the ZIA's Property Day (TDI) on 19 May 2026, Federal Minister for Building, Verena Hubertz, had held out the prospect of extending the funding, which was originally limited until 30 June 2026. This announcement was implemented by the BMWSB on 19 June 2026, extending the programme until the funds are fully utilised, or until 31 December 2026 at the latest.
The EH55-Plus funding was launched in December 2025 with the aim of reducing the construction backlog and thus accelerating the construction of climate-friendly residential units. The constant adaptation of funding conditions and resources to market realities is perceived by industry representatives as a constructive contribution to stabilising and promoting the construction industry.
