• Promotion from KfW and Federal Ministry for Housing, Urban Development and Building accelerates reduction of construction backlog
• Programme set to continue until federal funds for interest rate reductions are exhausted – by the end of the year at the latest

The Efficiency House 55 promotion is providing a powerful boost to new residential construction. The promotional stage, resumed for a limited period in December 2025 by KfW and the Federal Ministry for Housing, Urban Development and Construction, has supported the construction of 50,000 new housing units to date.

The offer is aimed at reducing the construction backlog and is provided as part of KfW’s “Climate-friendly Construction” promotional programme. It can be used to fund the construction of new buildings that meet the Efficiency House 55 standard, while 100% of heat generation is supplied by renewable energies.

We are pleased that the promotion is providing a suitable investment boost, thus contributing to the realisation of construction-ready projects. This speeds up efforts to reduce the construction backlog while creating new housing, which eases the burden on the climate and keeps the ancillary housing costs for residents low in the long term, explains Melanie Kehr, Member of the Executive Board of KfW.

The EH55 promotion is open to private, commercial and municipal investors until the allocated federal budget funds have been exhausted, with the end of the year set as a final deadline. Private and commercial developers can apply for loans from KfW, which are backed by federal funds to reduce the interest paid on them. Grants are offered to municipalities.

Detailed product conditions and interest terms can be found at:

www.kfw.de/297 (German page), www.kfw.de/299 (German page) and www.kfw.de/498 (German page).