• The programme will continue until federal funds for interest rate reductions are used up – at most until the end of the year
• Promotional loans of up to EUR 100,000 per housing unit, interest rate subsidised by federal government funds
• Promotion is specifically targeting the construction backlog – a building permit must be submitted with the application

The German Federal Ministry for Housing, Urban Development and Building and KfW are extending the promotion of the Efficiency House 55 standard for new buildings, which was introduced for a limited period in December 2025: The offer, aimed at reducing the housing construction backlog, can be used until the federal funds provided have been used up – but no later than by the end of the year. The Federal Government has extended the corresponding promotion guideline beyond the period initially set for 30 June 2026 until 31 December 2026. The Efficiency House 55 promotion will be integrated into KfW’s existing “Climate-friendly Construction” promotional programme.

Melanie Kehr, Member of the Executive Board responsible for domestic promotion at KfW, says:

“We are pleased to be able to continue to offer the Efficiency House 55 promotion to initiate action on the construction backlog together with the Federal Ministry for Housing. We offer low-interest KfW loans at attractive terms to private and commercial investors, using funds from the Federal Government for projects ready for construction that have a building permit. Local territorial authorities may apply for grants. To be eligible for promotion, the new buildings must be heated 100 percent using renewable energies. In this way, we contribute to stimulating new construction, keeping ancillary housing costs affordable in the long term and making progress with climate protection in the building sector.”

Key data about the promotion:

• The promotion is available for new buildings and first-time purchases of residential buildings

- that meet the technical requirements for the Efficiency House 55 standard

- that do not use any fossil-based heat generators

- that have a valid building permit in place at the time of application or, in the case of projects that do not require approval under the respective state building regulations, the competent building authority has been informed of the project and implementation is permitted to commence at the time of application

• A loan amount of up to EUR 100,000 can be applied for per housing unit. In principle, the interest rate is based on the development of the capital market and includes an interest rate reduction subsidised by federal funds. It is currently at 1.0 per cent effective annual interest rate for a loan with a ten-year term, a grace period of two years and ten years of fixed interest rate.
• Non-residential buildings can also benefit from the Efficiency House 55 promotion.
• Municipal authorities can apply for a grant in the amount of 7.5 per cent directly from KfW.
• Please note: The following point is important for all construction projects: The application must be submitted before the start of the project.
• The promotion is dependent on the availability of federal funds used by KfW for interest rate reductions on promotional loans and for grants. There is no legal entitlement to the promotion.

The detailed product terms and interest rates can be accessed at www.kfw.de/297, www.kfw.de/299 and www.kfw.de/498 (in German).