Given the current economic conditions, the German Property Federation (ZIA) is calling for a strengthening of the reform course and warns against setbacks in economic and financial policy. The association's representatives emphasise the necessity of a federal budget that consistently takes into account the principles of reliability, predictability, and transparency. Ms Aygül Özkan, Chief Executive of the ZIA, highlighted that in the current situation, it is crucial to consolidate confidence in Germany as a business location. She described setbacks in the reform course as a counterproductive signal and underlined the importance of a budget that takes these fundamental principles seriously.
In the area of residential construction, a moderate increase of EUR 100 million in investment-related expenditure is planned. Furthermore, a gradual transfer of existing funding programmes from the Federal Ministry of Construction to a new heading called “Promotion of New Construction and Renovation of Buildings” is planned. The ZIA welcomes this step, which aims to simplify and streamline the funding landscape, as it has long advocated for such a “two-programme world”.
However, the association criticises the lack of transparency regarding the future allocation of funds between new construction, refurbishment, and repurposing. A reliable and comprehensible design of the funding framework is considered essential for investors, project developers, and housing companies to make long-term investment decisions. Ms Özkan stressed that the federal government must quickly provide clarity, as a lack of information about future requirements and funding conditions prevents robust business decisions. This, she added, hampers urgently needed residential construction and jeopardises investments.
At the same time, the ZIA warns against focusing exclusively on the 2027 fiscal year. Financial planning up to 2030 reveals significant upcoming challenges. The association is particularly critical of the planned reallocation of EUR 2.7 billion from the Climate and Transformation Fund (KTF) to the core budget, which has already been criticised in the past. This transfer reduces the available funds for the transformation of the building sector and sends an inconsistent signal to investors and owners who rely on long-term stable funding conditions.
Ms Özkan emphasised the necessity that revenues from emissions trading be used directly for climate protection and transformation. Companies and citizens must be able to trust that these funds genuinely serve the stated purposes. A weakening of this earmarking would impair the credibility of climate protection goals and reduce investment security. The ZIA therefore appeals to the Members of the German Bundestag to use the upcoming budget consultations to make necessary corrections.
The budget consultations offer an opportunity to rectify weaknesses, ensure the earmarking of KTF funds, and sustainably strengthen the framework conditions for investments and innovations. The real estate sector expects this opportunity to be seized.
