No real estate sale without an energy certificate

The creation of an energy performance certificate (in accordance with §16 of the EnEV) may only be carried out by qualified experts. This means that you need to look for an expert with the appropriate license. According to §16 EnEV, every potential buyer of a property must receive an energy performance certificate. As the owner and seller of a property, you are obliged to have the certificate drawn up and to include it in the sales documentation. Refusal to present the energy certificate is an administrative offense and can be punished with a fine of up to 15,000 euros.

Why is the energy performance certificate so important?

It provides the buyer with all relevant information on the energy status of the property. It also provides information on the previous energy consumption and the expected energy costs for the future owner. A negative energy balance indicates to potential buyers that refurbishment is necessary, which can mean high costs for replacing the electrics and heating system, for example.

Energy certificate quickly explained

The 5 most important facts about the energy performance certificate

1. Legal obligation: An energy performance certificate is required by law when selling a property.
2. Decision criterion: The energy efficiency of the property is a key criterion for potential buyers.
3. Information on energy efficiency: The energy performance certificate provides information on the energy efficiency of the house and the predicted energy consumption.
4. Scale from A+ to H: Energy efficiency is rated on a scale from A+ to H, with H indicating an urgent need for renovation.
5. Administrative offense if not presented: Owners must have the energy performance certificate drawn up and present it; refusal to do so can be punished with fines of up to 15,000 euros.

The energy performance certificate, or the energy status of the property, also plays a role in real estate valuation and the valuation of apartment buildings.

Structure: Content and structure explained

Here is a short video explaining the individual elements of the energy performance certificate step by step.

Demand or consumption certificate? Costs and benefits

Both forms work, but here is the difference between:

1. Consumption certificate
2. Demand certificate

Consumption certificate quickly explained

A consumption certificate usually costs 100 euros, while a demand certificate costs between 300 and 500 euros. The cost of the energy performance certificate is borne by the owner, who is obliged to provide this data when selling the house. A meaningful energy performance certificate provides more detailed information for the buyer and is therefore recommended, even if it costs more.

The consumption certificate is based on the last 3 annual bills from the energy provider. It provides information on the past energy consumption of the building and, compared to the consumption certificate, offers less precise data on the energy status and future consumption.

• Costs: A consumption certificate is cheaper than a demand certificate, which is more expensive.
• Historical reference: Based on the last 3 annual bills of the energy operator.
• Limited informative value: Provides less precise data on the energy status and future consumption compared to the demand certificate.

Demand certificate quickly explained

The demand certificate costs between 300 and 500 euros and contains specific facts that are checked by an energy consultant on site. In contrast to the consumption certificate, the demand certificate looks at energy consumption in perspective. An expert assesses the condition of the building, the insulation and the heating system on site in order to draw up a forecast for the energy balance.

It requires a detailed on-site inspection by a specialist and provides more precise data on the energy status and future consumption than the consumption certificate. Due to its accuracy and informative value, the requirement certificate is often more meaningful for potential buyers.

• Costs: A demand certificate is more expensive than a consumption certificate.
• Future-oriented: Takes into account future energy consumption and the energy requirements of the building.
• Specialist assessment: Requires a detailed assessment by a specialist on site to produce a comprehensive forecast for the energy balance.

Valuate property

House valuation, apartment valuation, what do you have to pay attention to for a good sales price? You can find my tips here:

• Valuate property

Renting a villa: return and increase in value

Is it worth renting in Spain? Yes! As you will see later in the example, some generate 5%-10% of the purchase amount per year, just by renting in and around peak season. The remaining 3-6 months you use your villa yourself.

Are you planning to rent for the first time?

Profitable is not only the renting, also the increase in value of the property in special places like Mallorca or Ibiza, you should not disregard. More about this, after the yield calculation.

Learn everything you need to know here in the guide!

Renting: return of a villa

In Germany, real estate is rarely used as a vacation home and rented out during off times. If they do, the calculation works a little differently than the typical fully rented property. In a long-term lease, tenant X pays sum Y every month. Vacation rental also means a bit of speculation, depending on off-peak and peak seasons. In principle, however, the calculation of real estate return is the same.

Rental yield target: tenant pays your villa

Let’s summarize the simple goal of a good real estate return:

The return should be so high that your tenants, pay off your villa

The value varies, currently a good yield is at least 6% (in Germany). With higher interest rates for financing abroad, the value increases accordingly. 1% more interest requires directly 1% more yield – simplified.

Calculate return on investment: Example of how to get started

The usual yield calculation works in such a way that the annual cold rent (i.e. monthly rent * 12) is calculated. In the case of partial renting, the possible annual cold rent is just as important, but focused on a few weeks or months in the year in which you do not use the property yourself.

Simply calculated:

Return = annual income (cold rent) / investment (purchase price and ancillary costs)

Quick example:

• 6,7 % = 80.000 / 1.200.000

Tip! Decisive for good rental prices are, in addition to the villa (extras such as swimming pool) and good location, always the number of bedrooms / bathrooms.

But from the principle everything remains the same. Yield calculation.

Yield of a villa summarized

Fact 1) The calculation of the return on a property becomes important whenever you want to rent out your property. Fact 2) It simply puts the income of the rent in relation to your inventories (purchase price and service charges), with the aim that your tenants, pay your villa.

Fact 3) The result of the real estate yield is a percentage. If this is (currently) above 6%, all running costs (financing [repayment, interest] and maintenance) are covered, so to speak. If the yield is (currently) below 6%, you pay monthly.

Here again, for illustration purposes, the calculation of the “usual” return (when a capital investment is fully rented) and adjusted, the return of a rented property abroad (vacation home), which you also use.

Formula

The formula to calculation:

Fully leased:

Return = annual cold rent (cold rent * 12) / investment (purchase price and ancillary costs)

Partial leasing:

Return = annual cold rent / investment (purchase price and ancillary costs)

So, in principle, the same calculation.

Rent: How much rent for which villa?

Tip. Wondering how much a property worth X can be rented out for? Compare offers on platforms for vacation homes or also on AirBnb. Use similar parameters (location, condition, living space, bedrooms).

This way you can also benefit from the experiences of other landlords in the location without having to do a lot of rental experimentation yourself.

Example: Renting in the main season – 2.6% return!

For example, an acquaintance rents out his property worth 2,100,000 euros for 54,000 euros in the month of July alone.

Yield for this month:

2.57 % from the purchase price

In Germany, investors focus on real estate for their capital investment, with an annual return of 6%, so in hotspots like Ibiza you can earn almost half of the necessary minimum return in one month. Of course, the year does not have 12x the month of July on offer (hot temperatures, summer vacations in many countries). But the main season alone, May to September, generates a decent amount of return.

Unfortunately, you pay a little more interest and also the rental must be organized.

Fees: Rental and House Service + Advantage

Those who rent in hotspots like Mallorca, Ibiza or Marbella, of course, do not take care of it themselves. But there are excellent contacts on the spot, who take over everything directly for 20-25% of the rental income: Rental, house cleaning, maintenance to garden and pool maintenance. Of course, you could hire everything separately, but everything from one source is the best way to rent stress-free to serious tenants.

Renting through agency:

20% – 25% of the rental income

Once again the great advantage:

• Villa renting
• Communication with tenants
• Handover of the villa (moving in and moving out)
• Maintenance
• Outdoor facilities like garden, pool, tennis court, etc.
• Everything without stress

Let’s now look directly at a practical example with concrete figures.

Advantages: Return from rental and increase in value (land).

Real estate in the Spanish hotspots are of course somewhat more costly than buying “at home”. This brings the yield advantage, not everyone “dares to take the step”. In addition, you need more equity abroad, a whole 50-60% of the purchase price. More about this in a moment.

1. Good returns, often over 10%
2. In addition, increase in value of the property

Purchase price incl. refurbishment for example calculation

In the example, you buy a property including ancillary costs for 1.9 million euros and invest another 240,000 euros for the refurbishment to the final touches.

• Purchase price: 1.90.000 Euro
• Redevelopment: 240,000 euros
• Investment: 2.140.000 Euro

In peak months like June, July and August you can get 50.000 to 60.000 Euro / month, realistically and with pre-booking in January, February, March. We calculate 14.000 Euro / week in peak season +/- 1 month before and after peak season; also we consider realistic vacancy and your own use, for example over the winter months.

Calculation: Income from rental

The months then differ. Example:

• January – March: Self-interest
• April: Empty
• May: 12.000 Euro / week
• June – August: 14.000 Euro / week
• September: 11.000 Euro / week
• October – November: Empty
• December: Self-interest

Your return on investment is then calculated from the purchase price, rental/house service and the income:

• Annual cold rent: 260,000 euros / year
• House service (20%): 26,000 euros / year
• Annual rent (net): 234,000 euros / year

In sum:

• Investment: 2.140.000 Euro / year
• Yield: 10.9 % Yield

In Germany you can find real estate with yields over 10% only extremely rarely or in C-locations, which bring risks with them. Here you buy in the best location, villas with pool and sea view.

Increase in value of the property

Then, on top of the real estate yield, there is the general increase in land prices. Do you know what advantages places like Ibiza and Mallorca offer? Space is not infinite. Just like in Switzerland, for example, building space is limited and accordingly the real land price increases are higher compared to a capital investment you make “at home” nearby.

Here is an excerpt from the Frankfurter Rundschau, current from last year:

“On average, prices for island properties increased by 27.2 percent, with the highest rate of increase recorded by market researchers in the city of Palma, 42.1 percent, followed by the southwest, where vacation properties now cost 37.8 percent more than five years ago.”

Let’s calculate “only” with the 27.2% average.

• 27.2 % / 5 = 5.45 % p.a.

What are the incidental costs of buying real estate?

The cost block of incidental expenses is relatively extensive if you really consider all aspects. But there are a few differences.

Costs for the broker

Brokerage costs – In Germany, brokerage costs (for private purchases) are split 50% each between seller and buyer (by law). If a property is sold from company to company, the distribution of the brokerage costs is freely divisible between buyer and seller. In Spain (i.e. also Ibiza, Mallorca or Marbella) the brokerage costs are already included in the purchase price of the property (5% for standard properties).

Property tax on the purchase of a villa

Wealth Tax – If you buy a property in Spain and put over 700,000 euros of the purchase price from equity (not financing), you will have to pay tax on everything above the 700,000 euro exemption amount. Spanish wealth tax is between 0.2% to 2.5% of the net assets you bring in.

Tip. The exemption amount differs in the municipalities. In Catalonia and Valencia, the tax-free amount is only 500,000. In Madrid, the tax-free amount is unlimited.

Example:

• Total purchase price of the villa: 1.8 million euros
• Equity share (60%): : 1.08 Mio Euro
• Allowance: 700,000 euros
• Taxable assets: 308,000 euros
• Tax rate: 0.3%
• Tax amount: 924,00 Euro

Property tax: table

Here are all tax rates with assessment limits:

Source: WF Salinas.

Refurbishment for existing properties

Refurbishment and upgrading – Surely you still want to design your villa according to your wishes and ideas. For this you have to calculate at least with costs for the upgrading and depending on the year of construction of the house, or the last renovation, also with renovation costs (garden, pool to bedrooms, kitchen, bathrooms).

Typical ancillary costs at a glance:

1. Theoretical travel expenses (site visit)
2. Brokerage costs – pays seller
3. Notary fees – contract of sale
4. Land register costs – change of ownership
5. Refurbishment / upgrading (for existing buildings)
6. Wealth tax (from 700,000 euros)
7. Property tax (after purchase)

Conclusion: buy and rent villa

You have now really learned a lot. About the return on rent in seasonal times. You have learned the taxes, but also the incidental costs from the purchase with real estate agent, to the rental in maintenance of your property.

With this knowledge, you can find a profitable villa for rent in Spain.

Here I have 2 extra tips for you!

Real estate agents: Villa Portfolio Ibiza, Mallorca & Marbella

As a real estate agent I am on canvassing for clients, we provide exposés, schedule viewings and help with the buying process on site, from notary to financing if needed. A small selection and choice of my villas in Mallorca, Marbella and also Ibiza, you can find here:

• Lukinski: Villas

Financing abroad: equity and interest rate

You want to buy a villa in Spain? Whether Mallorca, Marbella or Ibiza, the conditions for real estate financing differ significantly. If you do not buy your villa for 100% personal use, but rent the villa partially or even completely as an investment, then you should know the special conditions in Spain. In addition, I also give you a few insights from the USA, as a comparison. So you can see how cheap a financing in the home country and how expensive loans as a foreigner in other countries become, in relation to your interest rate and your equity. In the end, it’s always about return on investment.

• Financing abroad

Selling a basement garage: Value, real estate agent and process

Let’s start with one of the most important questions for first-time sellers: What is the value of my underground parking space? After the three central factors, you’ll find all the steps of the real estate sale process that are relevant for you and the sale of your underground parking space, from documents, through the real estate agent question, to purchase agreement and handover.

Let’s start with the three most important value factors:

1. Location (city, district, and street)
2. Condition of the underground parking space
3. Short-term, long-term tenants / vacancy

Location: City, Street, and Fluctuation

Berlin, Hamburg, Munich, Cologne, Dusseldorf, Frankfurt and nationwide, the better the location of your underground garage, the easier the later rental of parking spaces to long-term and/or short-term parkers. In order to keep the vacancy rate as low as possible, the location is therefore the first thing to look at in the valuation.

Location in the valuation (currently and prospectively):

• Macro perspective – In which city are you selling?
• Meso perspective – Which district?
• Micro perspective – Which street and house number?

Whether it’s a small town, medium-sized cities, or metropolitan areas, there are more and more cars in city centers every year. The higher the turnover and the fewer the competing offers at the location, the better – also for the return of investors.

In the next step, buyers (important to understand their perspective) assess the condition of your underground garage.

Condition of Your Underground Garage

Few investors are willing to undertake an extensive underground garage renovation. Of course, there is a certain percentage that wants to buy very, very cheaply, and therefore looks for older or poorly maintained properties. The condition plays a central role in the rating of your underground garage, alongside its location.

For a specific rating, it is necessary to determine the current state and the desired state.

Typical defects from the first few decades are:

• Underground garage base
• Floor coatings
• Concrete renovation
• Crack sealing
• Roof waterproofing

Sometimes it is also renovation backlog, for example due to disputes over renovation within the homeowners’ association.

Important in advance, it is just an example:

Maintenance costs for parking garages vary greatly depending on the condition

Very old underground garage: 40+ years old

Here’s an example of a truly old underground garage, with about 100 parking spaces:

Let’s say the underground garage is now 40, 50 years old, really at the end of its life and well worn. Renovation and refurbishment costs are therefore unavoidable for the new underground garage owner.

Per parking space of the underground garage, you can expect around ~6,000 euros (as a total project), for 100 parking spaces in size.

Just the reinforcement of an underground garage base would be around 1.4 million euros. On top of that comes the renovation of the concrete, around 1.1 million euros.

Summary of the example:

• Example of renovating an old underground garage (~40-50 years old)
• Unavoidable renovation and refurbishment costs for the new owner
• Costs of about ~6,000 euros per parking space in the total project (100 parking spaces)
• Reinforcement of the underground garage base: about 1.4 million euros
• Concrete renovation: about 1.1 million euros additionally

Next, we take a look at the waterproofing of the underground garage ceiling. For the new insulation against dripping water, you can expect further costs of 0.5 million euros (Source: DZ Online). The individual items are getting smaller, but the total sum is still significant. Additional costs include smoke extraction, ventilation, or the renewal of electrical installations, in order to keep up with growing markets, such as the increasing number of electric vehicles in city centers and residential areas.

Short-term and long-term tenants / Vacant spaces

Alongside the short-term tenants on site, the rating also takes a look at long-term tenants and vacancies. In the rating, it ultimately comes down to short-term and long-term tenants as well as the potential (renovation, development, marketing) of the parking garage in the future.

Long-term rental agreements are naturally the ideal case, while vacancies are the opposite. To ensure the rating is realistic and to give future interested parties an overview, information about your tenants is collected. In addition, there are many smaller parameters, for example in good A-locations, the rental of commercial areas for advertising (entrances, parking areas, and facades).

This gives you three central factors of the valuation:

1. Location (city, district, and street)
2. Condition of the underground garage
3. Short-term, long-term tenants / vacancies

Sale directly to me? Single parking space / entire underground garage

I regularly receive inquiries asking if I would also be interested in buying a single parking space. Almost always the answer is no, outside of the metropolitan areas Berlin, Hamburg, Cologne, Dusseldorf, Frankfurt or Munich.

My small recommendation or tip, should you want to sell a single parking space: Contact your co-owners. You can get the list from the WEG management. Put up a notice. If the parking space is well rented out, especially in today’s time of inflation and little money from the bank (interest rates), you might even want to consider keeping your parking space instead.

Step by Step: Sale Checklist

Selling underground parking garages is significantly more specific than the simple sale of a parking space, garage, or individual garage. Many underground parking garages are not sold through real estate portals, but rather through personal networks, often by good and experienced real estate agents.

Nevertheless, it is important to understand the sale process so that you can prepare well and also find an experienced real estate agent.

Preparation: Real estate agent, documents, and valuation

The most important things to consider when preparing for a property sale.

• Financial planning and sale timing
• Hiring a real estate agent
• Documents and paperwork
• Increase property value
• Determine asking price
• Create property listing

Selling phase: Network and negotiation

In the second phase, it’s about marketing your property to find buyers and investors with sufficient creditworthiness.

• Market the property
• Contact with buyers
• Filter and select buyers
• Creditworthiness check
• Viewing appointments
• Sale discussion & price negotiation

Sale process: Complete the transfer

From the purchase contract to handover.

• Drafting the purchase contract with a notary
• Notary appointment
• Land register entry and payment processing
• Handover of the property
• Notary fees & real estate agent commission
• Paying taxes

Shared ownership underground garage: Individual parking space?

Finally, regarding the smallest unit: Can you also sell an underground garage parking space individually? The individual sale of underground garage parking spaces is possible. However, it depends on whether it is considered separate ownership or a special usage right. The difference is, if you have a parking space with its own land register entry (separate ownership), the sale is straightforward. With a special usage right, which belongs to a condominium, the special usage right can only be sold to another co-owner.

Here you can find more information about the individual sale of parking spaces in an underground garage:

• Sell parking space

Location, location, location! Real estate market

Parking spaces are in short supply at many hotspots in Germany. So here’s the good news first: Your parking garage will sell at a realistic selling price. After all, there were 2.92 million new car registrations last year alone. According to the KBA (Federal Motor Transport Authority), the vehicle stock in Germany increased by a total of 1.1 million vehicles, compared to the previous year’s figure of approximately 66.9 million registered vehicles in Germany, an increase of +1.6 %.

66.9 million registered vehicles in Germany

With the right buyer and investor network, typically through experienced real estate agents with successful deals, you will be able to sell your underground garage relatively quickly.

Here’s a closer look at the general real estate sales in the larger cities:

• Berlin
• Dusseldorf
• Frankfurt
• Hamburg
• Cologne
• Munich
• Stuttgart

What is a basement garage worth? Prices 2026

The value of an underground garage depends strongly on the location, size, and condition. As a general rule: Individual underground garage spaces are significantly less valuable than entire underground garage objects.

Status: 2026. Values without guarantee, dependent on location, condition, year of construction, ceiling height.

Who buys underground garages?

Target groups for underground parking garages are:

• Single parking space: Neighbors, tenants, commuters in the surrounding area – best advertised via posters in the building or on Immoscout/eBay Kleinanzeigen
• Small underground garage (up to 30 spaces): Private investors, real estate companies, homeowners’ associations (WEG)
• Larger underground garage: Institutional investors, parking space operators (Q-Park, APCOA, Contipark), project developers

Tip: Sell larger underground garages almost exclusively through specialized real estate agents or directly to institutional buyers. The classic private market is not suitable for these properties.

Selling an underground garage: Common mistakes

1. Wrong price perception: Underground garage parking spaces are often offered too expensive or too cheap. Without market knowledge, deviations of ±30% can happen quickly.
2. No zoning plan checked: Critical for larger objects – can the underground garage be used for other purposes? Are there possibilities for rezoning?
3. Rent agreements not checked: Ongoing rental agreements (monthly parking spaces, long-term parking) significantly influence the buyer pool and the rating.
4. Wrong marketing medium: Individual parking spaces on Immoscout, larger objects only via real estate agent or directly to parking space operators.

Frequently asked questions about selling a underground garage

Was ist ein Tiefgaragenstellplatz wert?
Ein einzelner Stellplatz in einer Tiefgarage ist je nach Stadt zwischen 5.000 und 50.000 € wert. In München erreichen Stellplätze in zentralen Lagen regelmäßig 30.000–50.000 €, in Leipzig oder Dresden sind 8.000–15.000 € marktüblich.

Kann ich meine Tiefgarage ohne Makler verkaufen?
Einzelne Stellplätze lassen sich oft selbst verkaufen – über Aushänge im Haus, Immoscout, Kleinanzeigen. Für größere Tiefgarageneinheiten oder ganze Anlagen ist ein spezialisierter Makler sinnvoll, da der Käuferkreis sehr spezifisch ist.

Muss ich bei einem Tiefgaragenverkauf Steuern zahlen?
Wenn die Tiefgarage weniger als 10 Jahre in Ihrem Besitz war, fällt auf den Gewinn Einkommensteuer (Spekulationssteuer) an. Nach 10 Jahren ist der Verkauf steuerfrei – außer es handelt sich um gewerblichen Grundstückshandel (mehr als 3 Objekte in 5 Jahren).

Was passiert mit laufenden Mietverträgen beim Tiefgaragenverkauf?
Bestehende Mietverträge gehen automatisch auf den Käufer über (§ 566 BGB: “Kauf bricht nicht Miete”). Das ist für Anleger attraktiv – für Käufer die Selbstnutzung wollen, ein möglicher Hinderungsgrund.

Lukinski Share: What is it?

Many are owned older properties. Some houses and apartments are in need of renovation, others are in need of refurbishment and still others are already perceived as dilapidated.

Sale + Redevelopment = More Profit

Hardly anyone can afford to completely renovate such a property – be it money reasons, time reasons, stress or even a combination of all factors.

Especially for such properties, with greater potential for appreciation, we offer sellers our exclusive Lukinski Share. If all conditions fit, you will profit 2x from the sale of your property.

Parameters for Share Deal (quickly explained):

• Old property with development potential
• Renovation / refurbishment backlog
• Also dilapidated / ready for demolition
• Purchase up to 5 million euros
• Possible: apartments and apartment buildings
• Not possible: single family houses

Why are we doing this?

We love to develop real estate. Gutting old, redesigning to create living space, for people. Many would also like to upgrade their property before it is sold. But not always, the possibilities are there. Our offer is specifically for the:

For those who think “a sale is not worth it” or “a sale is too costly” because the house is “too old”.

and

For those who think, “I don’t feel like refurbishing all this” or “how am I going to pay for it”?

Exactly for them, is our Lukinski Share Deal.

Contact & Evaluation

No stress during the sale, personal contact person, directly and without a broker and all over Germany. If desired, we will also give you a free evaluation directly. We look forward to your call or e-mail!

Lukinski Contact Person:

• Contact

Upgrading, renovation… to new construction

You want to sell an old house that would be too expensive to maintain? Sometimes the chance to directly provide additional living space. This again increases the effectiveness of your floor space. More living space = More rental income. Here, 2 smaller apartment buildings (6 ETW + 3 ETW) become a larger new building with a total of 18 ETW (condominiums); increase + 9 units.

In addition, attention was also paid to future development. Instead of equally distributed 70-90 square meters apartments, there are now respectively:

• 1 + 2 floor: 4x micro apartment each with ~ 40 sqm
• 3, 4 + 5 floor: 2x apartments each ~ 80 sqm
• 6 floor: loft apartments 2x ~ 80 sqm each incl. terrace

This will 1) create more housing and 2) raise standards = higher rental income / square foot.

From old, make new:

Masonry, substance, from basement to roof truss (here) everything is renewed.

Only 4 months later, the new masonry is already drying.

Modern new construction.

For you as a seller, without work, without stress, without cost.

What have we already done? – Project development

We have already developed several properties! A recent example: Last year we bought a car dealership (commercial property). Right now the old car dealership is being demolished, with two excavators. In the coming months, more than 8 apartments will be built here in an apartment building. 8 apartments, instead of 80 parking spaces – a good deal.

A car dealership with a lot of wasted space (concreted outdoor area) thus becomes new living space!

The city itself benefits from this; housing is in short supply in many cities. The new tenants and buyers profit from this. We as a real estate developer and you as a seller, through an additional share.

Contact & Evaluation

No stress during the sale, personal contact person, directly and without a broker and all over Germany. If desired, we will also give you a free evaluation directly. We look forward to your call or e-mail!

Lukinski Contact Person:

• Contact

In the fastest case, we seal already within 14 days at the notary.

What is new? Climate, new construction and renovation

Climate policy has, of course, left a very big stamp in the agreement between the SPD, the Greens and the FDP. 177 pages of coalition agreement have now been agreed. A search for the term “climate” yields 198 hits. More than 40 pages deal with the changes for more climate protection. The big goal is climate neutrality.

For example, heating systems are to be operated with at least 65% renewable energies from 2025; regardless of whether it’s a single-family home, condominium or apartment building. Residential construction is to be massively promoted, from the current 306,000 apartments built each year to a total of 400,000 new apartments. An increase of 30.5% in residential construction. This in turn (and other tools such as the rent brake) is intended to “make housing affordable.

The most important facts at a glance: 2022 will see the…

Changes at a glance:

• New construction of 400,000 apartments / year, of which 100,000 public
• Own Ministry of Construction
• Property promotion
• Regional rent limit
• Construction industry and climate protection
• Solar panels on all roof surfaces
• Climate-neutral heat supply: Heating systems
• Charging stations (e-car) expansion

Source: Coalition agreement real estate – Immobilien-Erfahrung.de

New housing construction & building boom: +100,000 apartments annually

The new German government wants to promote a construction boom. To this end, 400,000 new homes are to be built each year, as initially described. Currently, just over 306,000 apartments are completed each year. Accordingly, the volume is to be increased by 30.5%.

Minister of Construction and Ministry of Construction

The Federal Real Estate Agency in particular is to take responsibility for this, with public investment for 100,000 apartments. But according to the coalition agreement, the new federal government wants even more, even creating its own construction ministry with its own construction minister.

Another major problem in Germany, which the German government intends to remedy, is the very long building permit procedures. These are to be simplified so that construction can / may take place more quickly, from new apartments to wind turbines.

New construction and construction ministry at a glance

The most important facts at a glance:

• Ministry of Construction and Minister of Construction
• Federal Real Estate Agency (BImA)
• Construction investments: + 30.5 % or ~94,000 apartments / year
• Building permit: Speed in construction

Rent brake: Regional limitation

One of the most important topics in the new coalition agreement is housing and construction. Rising rents in Germany’s inner cities dominate the headlines, whether online, on TV or in the newspapers. Especially in major cities like Berlin, Munich and Hamburg, affordable housing is becoming a real problem, especially for young families.

There are no signs of a change in the trend. Also your view of the rent price increase of the last years and decades does not let itself prophesy an easing. Even the European Central Bank is now demanding steps from Germany to counteract the general price increases in Germany, there is this morning on Deutschlandfunk.

Development of the rent price index for Germany

Development of the rent price index for Germany in the years from 1995 to 2020 (2015 = index 100):

You can find more statistics at Statista

As described, 400,000 apartments are to be built annually for this purpose, 100,000 of them publicly financed.

Facts about the regional rent brake

You’re probably already familiar with the rent brake from Berlin. The experiment failed, but the rent cap did not. According to the coalition agreement, there will be a regional rent cap, limited to a maximum of 3 years. The rents in this region may then rise by a maximum of 11%, previously it was 15%.

Rent control in the coalition agreement:

1. Rent limit for individual regions
2. Limited to maximum +11%
3. Limited to a maximum of 3 years / region

Promotion of ownership: Increase ownership rate

In general, ownership is to be promoted more strongly. We have already discussed the topic of owner-occupancy in detail, especially in relation to real estate as an investment (rental). Owner-occupation is the most expensive form of housing, but it is still a way of building up wealth for private individuals in the long term. Accordingly, more German citizens are to become homeowners. Primarily naturally in dwellings, finally the sealing of the land surfaces increases ever more. In Germany alone, five hectares of land are sealed every day, e.g. for parking lots, but also for new construction.

This is what the coalition agreement says:

“We want to enable more people in Germany to live in owner-occupied property”

46.5% Ownership rate in Germany

What is the situation regarding the home ownership rate in Germany?

• 2018 – 46,5%
• 2014 – 45,5%
• 2010 – 45,7%
• 2006 – 41,6%
• 2002 – 42,6%
• 1998 – 40,9%

Source: Federal Statistical Office

Solar system: use roof surfaces

Solar installations are again a big topic, for many years many subsidies are provided for it by the state. Now solar systems are to become mandatory for a large part of the construction industry.

Specifically, everything up to the coalition agreement:

“All suitable roof space to be used for solar energy in the future.”

The goals are very ambitious; by 2030, 90% of the electricity is to come from solar alone. Many areas are available for this, just think of single-story supermarkets with their flat roofs or even huge logistics centers.

“For new commercial buildings, this should be mandatory; for new residential buildings, it should become the norm.”

Currently, Germany needs a net amount of electricity produced of 220 gigawatts. Solar energy is expected to cover 200 gigawatts in the next few years.

Target: 200 gigawatts / year through electricity from the sun

Installation, whether single-family house or apartment building:

Climate-neutral heat supply: Heating systems

In the Building Energy Law (GEG), there will be the following changes: Heating systems installed after 2025 must be operated with 65% renewable energy. This will be a great challenge and at the current technical level, especially hybrid systems with solar thermal energy will have to be installed.

Tip. Read more about the “Future” here:

• Low energy house
• Solar energy for the home

In addition, there are a few more detailed changes, especially for conversions, extensions under lines.

Insulation, increasingly important in new construction:

Charging stations: Public expansion & in house

The switch to electromobility, which I have written about frequently here on the blog, will also be very interesting.

The headline is big:

15 million electric cars + 1 million charging stations

15 million electric cars will pose major challenges for the power grid. To supply all these cars with electricity, the German charging network is to be expanded to 1 million charging stations.

Of course, not all charging stations will be public; a large proportion will be installed primarily in houses and garages, carports and underground garages. Fast-charging stations are already being installed in more and more underground garages. According to the current state of technology, electric cars can be recharged in about 30 minutes.

The interesting thing is that in the future, electric cars could be part of the power grid. As decentralized electricity storage. If we increasingly go to solar energy, energy from wind power and hydropower, then energy is not always available in the same amount. We also can’t ramp up a power plant. The batteries of electric cars could be for decentralized storage for our cities in the future.

No tax increases: Top tax rate remains the same

Finally, something good, for all property owners who also rent, the top tax rate was not touched. Nor were there any other tax increases.