Overview

• Residential buildings contribute about 14% of Germany’s CO₂ emissions, making them a critical focus for the 2045 neutrality goal.
• The revised Building Energy Act requires new heating systems to run on at least 65% renewables, though its future scope is still being defined.
• Climate-adapted retrofits are projected to push property values up by roughly 0.5 percentage points as energy upgrades take effect.
• By mid-century the overhaul could generate €1 trillion in additional sector value and create around 107,000 jobs, cutting unemployment by about 0.2 points.
• In the four largest EU economies combined, decarbonizing housing stock demands nearly €3 trillion in investments, with Germany accounting for almost half of that sum.