Introduction
The new federal government has published its coalition agreement. The document contains numerous proposals that affect the real estate sector -- from tenancy law and energy-efficient renovation to reducing bureaucracy. This article puts the key announcements into context.
Housing Market and Tenancy Law
Rent Cap and Tenant Protection
The coalition commits to extending the rent cap (Mietpreisbremse). Beyond that, index-linked rents are to be capped, and regulations on furnished lettings and short-term rentals are to be tightened. An expert commission is to develop reform proposals.
Homeownership Support
The coalition announces its intention to facilitate the acquisition of homeownership. Specifically mentioned are subsidized-interest loans for families and a program called "Jung kauft Alt" (Young Buys Old) to promote the purchase of existing properties with renovation obligations.
Energy Policy and the Building Sector
Technology Openness
The coalition agreement emphasizes technology openness in heat supply. The strict 65-percent rule of the GEG (Building Energy Act) is to be retained but supplemented by neighborhood-level solutions and flexible implementation pathways.
Funding Programs
The continuation and simplification of funding programs for energy-efficient renovation is announced. The KfW funding landscape is to be made clearer. The return to EH55 funding for new builds is suggested.
Municipal Heat Planning
The deadlines for municipal heat plans remain in place: major cities by mid-2026, smaller municipalities by 2028. The coalition emphasizes the importance of good coordination between the Building Energy Act (GEG) and local planning.
Reducing Bureaucracy and Digitalization
Building Type E
The implementation of Building Type E for simpler construction is announced. Moving away from the rigid adherence to recognized rules of technology (anerkannte Regeln der Technik) is intended to reduce legal uncertainty.
Digital Processes
A digital procedural law is to accelerate planning and approval processes. The digital building file and nationwide uniform standards are being pursued.
Bureaucratic Costs
An independent body is to examine the cost implications of DIN standards. The goal is greater transparency about the economic impact of technical regulations.
Insurance and Prevention
Natural Disaster Insurance
The introduction of a mandatory natural disaster insurance for residential buildings is announced. Details on the design -- particularly regarding the insurability of high-risk locations and premium levels -- remain open.
Assessment and Criticism
Positive
The coalition agreement contains the right approaches: technology openness, reducing bureaucracy, and simplifying the funding landscape are welcomed by the industry.
Critical
Many proposals are subject to funding availability. Wording such as "we intend" or "we will examine" suggests a lack of resolve. The announced tightening of tenancy law could dampen investment in rental housing construction.
Wait and See
Implementation will show whether the announcements bring substantive improvements. The industry will closely monitor the parliamentary proceedings.
Conclusion
The 2025 coalition agreement contains both light and shadow for the real estate sector. Positive approaches to reducing bureaucracy and simplifying funding programs stand alongside critically viewed tightening of tenancy law. The concrete implementation will determine the actual impact.
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*This article is for general information purposes and provides context on political proposals.*
