Building offensive 2026: Billion-euro package to finally alleviate housing shortage
The housing situation remains tense: High construction costs, rising interest rates and a shortage of land are slowing down new construction. With the „Building Campaign 2026“, politicians have announced a billion-euro package to reignite investment. The aim: more affordable homes, faster procedures, more reliable funding. What does this mean in concrete terms for owners, property developers and investors - and how do you prepare strategically for the coming 12-18 months?
What to expect behind the 2026 construction campaign
Even if final legislative texts are still pending (as of today), core elements are emerging that have already been discussed politically in a similar form or existed in predecessor programmes. These presumably include
- Incentives for rental housing construction: Combination of KfW loans, interest rate reductions and grants for efficient new buildings (e.g. EH55/40).
- Tax relief: Degressive depreciation models and special depreciation allowances are conceivable, which take the pressure off the early years and stabilise cash flows.
- Serial and modular construction: Standardised type approvals to shorten planning times and reduce construction costs per square metre.
- Accelerated authorisations: Digital building applications, deadline regulations, more staff in building authorities.
- Building land mobilisation: Activation of communal areas, leasehold models, redensification with adapted parking space requirements.
- Social housing: Additional funds and quotas create predictability - also for mixed-use neighbourhoods.
Planning reliability is crucial for the market: clear funding conditions, quick commitments and transparent interaction between the federal states, local authorities and development banks. This is precisely where the 2026 construction campaign comes in.
Calculation example (simplified assumptions): Construction costs €3,300/m² gross floor area, 1,800 m² living space, 30 units. Without a subsidy, the initial rent calculation is around €13.50-15.50/m² cold (including the usual market risk premium). If a subsidised loan reduces the effective interest rate by 1.0 percentage point and grants a subsidy of €20,000 per unit, the imputed cold rent is reduced by around €0.80-1.20/m² - with an improved initial yield at the same time. Result: better lettability, faster marketing cycle.
What owners, property developers and investors should prepare for now
The experience of past funding phases shows: Those who clarify documents and decision-making paths at an early stage realise projects faster and more reliably. Three areas are particularly effective:
- Ready for authorisation: Preliminary planning (preliminary building enquiry, clarification of parking spaces/noise protection) and verifiable cost calculations accelerate funding approvals.
- Conveyor combinations: KfW loans at reduced interest rates, regional programmes, leasehold if necessary - clever packaging noticeably reduces capital costs.
- Product strategy: Mix of 1-3 room units, barrier-free standards, optional home office niches - this is how new construction meets real demand.
Especially in the Rental housing The combination of efficient building standards, serialised components and a solid support structure has a positive effect. The sweet spot is often where technical quality reduces long-term operating costs without exceeding the construction costs.
Typical errors & solutions:
- Error: Construction time assumptions too optimistic. Solution: Allow 10-15 % buffer, check contractual penalties and supply chains.
- Error: Unclear eligibility of individual components. Solution: Coordinate with the funding agency at an early stage and adapt the building specifications in detail.
- Error: Homogeneous mix of flats. Solution: Integrate floor plan variants and flexible expansion stages (e.g. storage room/home office).
- Error: Plots without potential for redensification. Solution: Systematically check the development plan, clearance areas and roof extensions.
Cost control: where there is room for manoeuvre now
Construction prices have stabilised recently; slight easing is noticeable in some trades. Serial construction and standardised detailed solutions open up additional savings potential of 5-10 % - without compromising on quality. It is important to clearly separate „must costs“ (statics, envelope, building services) and „can options“ (high-end equipment), coupled with a life cycle calculation: a more efficient heat pump may be more expensive to purchase, but it saves operating costs and can secure subsidy criteria, which improves overall cost-effectiveness.
In sales, it is worth taking a look at the target group: family-friendly floor plans in the commuter belt score points with parking space solutions and short distances; micro-apartments close to the city centre benefit from layouts that can be furnished and compact building services shafts. Both can be converted into modular concepts - ideal for the building offensive logic.
Opportunities for sellers and portfolio holders
Owners of developable plots or unrenovated properties are facing growing demand - especially when B and C locations allow more projects thanks to subsidies. Those who enter the market now with a reliable site analysis, building rights check and rough cost estimate will achieve greater transaction security and shorten due diligence phases. For property owners, conversion becomes Build-to-rent or the addition of extensions/extensions is interesting, provided that the building campaign favours redensification.
Quick check before project start (practical guide):
- Building law: Is there a reliable assessment of the GRZ/GFZ, clearance areas, noise protection?
- Eligibility: Does the design fulfil the energy characteristics and area standards?
- Calculation: Sensitivity analysis for +10 % construction costs and +0.5 % points interest.
- Marketing: target group concept, rental bandwidth, exit strategy (hold/share/sale).
To-do list: How to position yourself for 2025/2026
- Bundle documents: Seamless planning and cost dossiers speed up every funding review.
- Mapping funding pots: Combine federal, state and municipal programmes; check updates on a quarterly basis.
- Professionalise contract awards: GMP models, clear interfaces, bonus-malus regulations for deadlines and quality.
- Sharpen the product: Thinking about unit sizes, fittings, parking spaces and mobility concepts from the market perspective.
- Parallelise financing: Interlocking bank discussions, KfW applications and municipal commitments.
Conclusion: The 2026 construction campaign can become a catalyst if planning, promotion and the market come together. Those who make structured preparations now will benefit in several ways - through lower capital costs, faster approvals and marketing that meets real demand.
Ready for the next step? We examine your property, your planning or your portfolio in a well-founded and discreet manner - including marketing and promotion strategy. Request an initial consultation now.
