Improved promotional conditions under the KfW Climate-friendly construction in the low-price segment programme from 1 September 2025

As of 1 September 2025, KfW and the Federal Ministry for Housing (BMWSB) are improving the promotional conditions under the “Climate-friendly construction in the low-price segment” programme.

In line with the new regulations, kitchens and kitchen-diners will now be recognised as living spaces, thereby taking greater account of common building methods. The construction cost benchmark has also been increased so that more construction projects that fall within the set cost limit are eligible for promotion. Both product adjustments will help ensure that more projects can benefit from promotion. Through this programme, KfW is supporting the construction of climate-friendly and space-saving residential buildings using promotional loans financed by the Federal Government. The aim is also to create new, affordable housing. Private individuals, companies and other investors can apply for promotion.

• Kitchens and kitchen-diners
  One of the eligibility requirements of the Climate-friendly construction in the low-price segment programme is a cap on floor area, which is measured according to the number of living spaces. Going forward, kitchens and open-plan kitchens will be regarded as living spaces, even if they are part of the living room, for example. The programme is therefore adapted in line with building practice that often features open-plan kitchens in compact apartments. The floor area may be slightly higher than specified. This increases the flexibility of housing design for developers.

• Increase in the construction cost benchmark
  The 18 percent increase in the construction cost benchmark means that more projects than before can be completed within the cost limit. This provides planning certainty for developers and ensures that more affordable housing is created.

Clients can apply for loans under the new promotional conditions through their usual bank from 1 September 2025. The new regulation can also be applied to promotional loans that have already been approved, where evidence can be provided following completion of the project under the new product conditions.

Details of the product adjustment will be available from 1 September 2025 at Climate-friendly construction in the low-price segment (296) | KfW (in German)