Construction costs are currently skyrocketing

New regulations by the Habeck Ministry starting tomorrow(!). The following points are to change:

[*]Basically, there is no more cash from KfW, only loans with repayment grants. On the other hand, BAFA provides all direct subsidies for individual measures. This is considered a simplification for applicants by the Ministry of Economic Affairs.
[*]KfW promotional loans currently cost around 2.3 percent effective interest. These interest rates are to be lowered in the future with federal funds.
[*]There are no longer any direct subsidies for comprehensive renovation to a KfW efficiency house standard in existing buildings. For the corresponding program number 461, KfW paid up to 75,000 euros per residential unit. Now it has been removed.

[*]Renovation to Efficiency House (EH) 100 is no longer subsidized. For other categories, the repayment grants are massively reduced, to five percent for an EH 85 (currently 30 percent grant) and 25 percent for an EH 40 EE (currently 50 percent grant). For new construction of an EH 40 with sustainability certificate, there will be only five percent instead of the current 12.5 percent.
[*]BAFA subsidies will have their funding rates reduced by five to ten percentage points. Example: Previously, you could get up to 30,000 euros in subsidies for installing a heat pump; after the reform, up to 24,000 euros. For window replacement, you could previously receive up to 15,000 euros, after the reform 12,000 euros.

[*]There will be a heating replacement bonus for the exchange of old gas heating systems in the future.
[*]Hybrid heating systems consisting of a heat pump and gas condensing element will no longer be subsidized. Money will only be given in the future for 100-percent heat pumps.
[*]New construction subsidies are to be largely switched to low-interest loans. Fundamentally new rules are planned here for 2023.
[*]The new KfW funding conditions apply as of Thursday already.

Renovation in existing buildings is apparently not desired? I can understand that budgeting is necessary and subsidies are not always seen as positive from the end consumer’s perspective. But that’s a tough pill to swallow...

Unfortunately, the development and thus the final surveying are delayed on our end. Our general contractor is somewhat frustrated (we are too, of course) because the architects there currently don’t have much to do, after many of their planned projects were canceled.

In addition, I am now regularly receiving calls from general contractors and brokers with whom we had inquired at some point whether there is still interest. So the demand really seems to be declining quite a bit. However, this has not yet had any effect on prices in this area. This is probably due to the still extremely low supply.

Renovation of existing buildings is apparently not desired? I can understand that budgets have to be managed and subsidies are not always seen positively from the end consumer's perspective. But that's quite a tough nut to crack...

You also always have to keep in mind whom you are subsidizing. The typical homeowner is simply not the low income earner or the single mother working part-time. Why should a doctor couple with a net monthly income of 10,000 EUR receive KfW funding for a heat pump?

Why should a doctor couple with a net monthly income of 10,000 EUR get KfW funding for a heat pump?

because otherwise they would get an 80% gas boiler or a pellet stove. And because both are politically unacceptable at the moment. The alternative to still get them to do it is therefore from now on or from 2023: ban. So burn gas or solid fuels. The Habeck party can do that, they are true masters and problem solvers in this regard :rolleyes:

Important: Subsidies for the renovation of residential buildings 461 and non-residential buildings 463 can still be applied for until the deadline of 27.07.2022 (so until midnight today).

Our Minister of Climate is already very generous....

because otherwise 80% of them would install a gas boiler or a pellet stove. And because both are politically not approved at the moment. The alternative to still get them to do it is therefore from now on or from 2023: ban it. So burning gas or solid fuels. They can ban it, the Habeck party, they are true masters and problem solvers before the Lord in this :rolleyes:

No one who has a net income of 10,000 EUR per month is currently having a gas heating system installed. Gas heating systems are taken by those who cannot afford the current additional costs of around 30-40,000 EUR for geothermal heat pumps, deep drilling and photovoltaics...