Real estate industry adapts to extreme heat in Germany

As climate change increases the frequency and severity of heatwaves, the real estate industry is facing growing challenges regarding building heat protection. In Germany, where built-in air conditioning is relatively rare compared to the US or Japan, existing building stock often lacks sufficient measures to handle extreme temperatures.

City 1 Group, an active real estate company in Germany and Greece, highlights structural solutions to mitigate heat. At their Epsilon Office in Neu-Isenburg, they utilize external blinds to intercept solar radiation before it reaches window surfaces, combined with full air conditioning and high ceilings to manage heat distribution. The company emphasizes that investing in long-term solutions, such as external blinds, is more cost-effective over a twenty-year period than cheaper internal alternatives due to reduced energy consumption.

From a legal perspective, German rental law currently follows the 'construction principle,' meaning tenants generally rent a property based on the thermal protection standards present at the time of construction. While the Federal Court of Justice has granted homeowners rights regarding air conditioning installation, tenants face restrictions, such as the inability to modify building structures or install external units without landlord consent.