The rate of energy‑efficient renovations in Germany’s building stock fell again in 2025, reaching a new low, according to the 2025 renovation‑ratio report compiled by B+L Marktdaten Bonn for the Federal Association of Energy‑Efficient Building Facades (BuVEG). The figures were reported by the Monday editions of the Funke‑Media Group newspapers.
In 2025, only 0.67 % of the roughly 19.5 million residential buildings were retrofitted for energy efficiency. The previous year’s rate had been 0.69 % in 2024, 0.70 % in 2023, and 0.88 % in 2022. To meet climate targets in the building sector, the association says a yearly renovation rate of about 2 % would be required.
Jan Peter Hinrichs, managing director of BuVEG, told the Funke newspapers, “Renovation activity in Germany is at a concerning level. With an ambitious Building Energy Act, there is an opportunity to make energy retrofits more attractive and thereby lower energy costs for the public in the long run”. Despite this, private and institutional property owners remain hesitant to invest in their buildings.
The downward trend also continues in the non‑residential sector. The renovation rate for more than two million non‑residential buildings dropped to 0.92 % in 2025, down from 0.95 % in 2024. Hinrichs added, “Public buildings such as hospitals, schools, and government offices are experiencing a major backlog of renovations. An earmarked fund for infrastructure and climate neutrality could provide a breakthrough. Germany needs not just a construction accelerator but an urgent renovation booster”.
The industry’s assessment of why overall renovation activity has stalled is illustrated even in relatively simple measures. Frank Lange, managing director of the Association of Windows + Facade, said, “The comparatively low‑cost area of window replacement remains at a low level. New windows are often the first step in a renovation. When this step is omitted, the entire building modernization stagnates. That’s why reliable conditions and planning certainty-both in financing and in the Building Modernisation Act-are critical”.
