Federal Building Minister Verena Hubertz is promoting the new program “Commercial to Residential.” Up to €30,000 per newly created housing unit is available, with a maximum of €300,000 per investor. Compliance with energy renovation requirements is mandatory.
Hubertz emphasized that the program targets buildings that were once full of life but now stand empty, while many people are searching for housing. These include vacant retail spaces, offices, or former village schools. Nationwide, more than twelve million square meters of office space are currently vacant, the minister said.
The Ifo Institute estimated in 2024 that converting commercial properties in Germany’s seven largest cities could create up to 60,000 apartments. However, experts warned that conversion is often not economically viable due to high costs for fire safety, structural engineering, and sharply rising construction costs. Moreover, office buildings are not always attractive places to live, for instance when they lack access to schools, public transport, or parks.
In 2025, Germany completed fewer apartments than in any year since 2012. The new subsidy program aims to counter this trend while also reducing vacancy.
Source: Tagesschau
