Germany launches €300 million office‑to‑housing grant to tackle shortage

From 1 July 2026 the German federal government and the development bank KfW will provide a new "Gewerbe zu Wohnen" grant of up to €30 000 per newly created residential unit. The programme is funded with €300 million and is open to private investors, housing cooperatives, companies and municipalities that convert vacant office or commercial buildings into homes that meet at least the "Efficiency‑House 85 Renewable‑Energy" standard. The subsidy covers 30 % of eligible conversion costs, capped at €100 000 per investor, and is intended to create thousands of apartments – estimates range from 11 000 in the seven largest cities to as many as 60 000 when all suitable spaces are used.

In parallel, the state of Bremen has approved a €140 million housing‑funding package that will finance about 635 affordable apartments and support the conversion of office space into residential use. The programme also includes special provisions for socially vulnerable groups such as the homeless and refugees. At the federal level, the Genossenschaftsbankenverband (BVR) warned that housing prices are rising faster than household incomes, especially in southern Germany, the Berlin outskirts and the Rhine‑Main area, and called for lower transaction taxes to improve affordability. Niedersachsen’s cabinet extended its special zoning and pre‑emptive purchase tools for municipalities to speed up new construction until the end of 2029. Finally, a 50/50 cost‑sharing rule for CO₂‑charges and gas‑network fees on newly installed fossil‑fuel heating systems will take effect from 2028, aiming to protect tenants from bearing the full burden of such costs.