Overview
- KfW began accepting applications on Wednesday, July 1, for the new 'Gewerbe zu Wohnen' program that funds conversions of vacant commercial and office properties into dwellings.
- The fund totals €300 million and provides up to €30,000 per created housing unit with a €300,000 cap per investor and a €100,000 limit on eligible costs per unit.
- Payments are grants that do not have to be repaid and are conditioned on meeting specified energy‑efficiency and renovation requirements to advance climate‑friendly refurbishment.
- Industry experts and institutes say many conversions face steep barriers, including higher refurbishment costs comparable to new builds, fire‑safety and structural upgrades, long permitting times, and sometimes poor locations for families.
- Officials present the program as a targeted tool that could support at least several thousand units but not solve the housing shortage alone, and it is meant to work alongside faster permitting reforms such as the 2025 'Bauturbo'.