German private landlords largely avoid energy‑renovation upgrades

A survey of about 1,000 private landlords in Germany shows that 59 % plan no energy‑renovation measures such as new heating systems, window replacement or insulation, up from 48 % a year earlier. The poll was commissioned by DI Deutschland, Immobilien AG and the Institute of the German Economy (IW). Respondents cite unclear policy direction, unrealistic requirements and missing funding structures as key obstacles; IW‑expert Michael Voigtländer warned, “Without clear orientation, realistic requirements and workable funding structures the transformation will not succeed.”

Among landlords who do invest, the main motivations are long‑term energy savings (53 %), higher tenant satisfaction (41 %) and property‑value increase (38 %). The most common upgrades are new heating installations (34 %), window replacement (25 %) and façade insulation (18 %). The surveyed rental stock mainly dates from before 1994, a segment that typically requires substantial retrofitting. The building sector accounts for roughly one‑third of Germany’s CO₂ emissions, making these renovations critical to meet the nation’s climate‑neutrality goal for 2045. Recent reforms to the heating law have removed the mandatory 65 % renewable‑energy share for new boilers, but requirements for future gas‑heating to use increasing shares of CO₂‑neutral fuels from 2029 onward remain, prompting concerns about potential setbacks to climate targets.