The German Federal Ministry of Housing, Urban Development and Building is initiating a program to accelerate the construction of previously approved housing projects that have been stalled, according to reports from ministry sources cited by “Handelsblatt”. To achieve this, the ministry intends to temporarily reinstate financial support for buildings meeting the EH55 energy efficiency standard.
The move is designed to provide an immediate boost to the construction sector and signal to investors that construction projects are once again viable. A ministry document, detailed in the “Handelsblatt” report, states the intention to “send the right signals to the market that investments are worthwhile.
The initiative, previously outlined in a coalition agreement between the Union and SPD parties, aims to address a growing backlog of approved housing developments that have become financially unfeasible under altered funding conditions. Many projects, initially planned under different economic circumstances, are currently on hold.
Initial funding for the program will see “at least” €59 million allocated this year from the ministry’s new construction support funds. The program is slated to continue through 2026, with a commitment to significantly increase funding at that time.
The return to supporting EH55 standard construction represents a shift in policy. Previously, the ministry discontinued this form of support to prioritize the construction of more environmentally friendly buildings, a move intended to help Germany meet ambitious climate protection goals. Concerns over potential failure to meet these targets and the associated risk of substantial EU penalties, have reportedly influenced this policy adjustment.
