Germany Enhances Subsidies for Climate-Friendly and Affordable Housing

Subsidies for Climate-Friendly and Affordable Housing

Germany: Germany is offering better interest rates for its Climate-Friendly New Construction (KFN) and Low-Price Segment (KNN) programs to boost affordable, climate-friendly, and space-efficient housing. KNN has updated its terms, counting kitchens as living space and raising the construction cost limit, increasing flexibility for homeowners. Federal Minister Verena Hubertz emphasized that these subsidies, together with limited term EH 55 funding, create favourable conditions to quickly turn housing plans into reality.

Since 2023, KFN has supported around 115,000 housing units. Funding is available as low-interest loans for investors, cooperatives, companies, and private individuals, while municipalities can receive grants. Greater support is given to buildings meeting the Sustainable Building Quality Seal (QNG). Both programs promote affordable, energy-efficient construction and acquisition of new or qualifying existing buildings.

Source: BMWSB