German Federal Government and KfW Extend Support for New Efficiency House 55 Buildings

The German Federal Government and KfW are extending the promotional program for new buildings constructed to the "Efficiency House 55" standard. Originally introduced for a limited period in December 2025, the initiative aims to address the housing construction backlog and will remain available until federal funds for interest rate subsidies are exhausted, with a firm deadline of December 31, 2026.

The Federal Ministry for Housing, Urban Development and Building, in conjunction with KfW, has extended the relevant promotional guideline beyond the initially set date of June 30, 2026. The "Efficiency House 55" promotion will be integrated into KfW's existing "Climate-friendly Construction" program.

This program offers promotional loans of up to EUR 100,000 per housing unit, with interest rates subsidized by federal funds. A building permit must be submitted with the application to qualify. Eligible new buildings must utilize 100% renewable energy for heating. The initiative seeks to stimulate new construction, maintain long-term affordable ancillary housing costs, and advance climate protection in the building sector.

The promotion is applicable to new residential buildings and first-time purchases that meet the technical requirements of the "Efficiency House 55" standard and do not use fossil fuel-based heating. Applications must be submitted before the project begins, and the availability of funding is dependent on federal allocations.