KfW and the Federal Ministry for Housing (BMWSB) will introduce changes to the “Climate-friendly construction in the low-price segment” programme starting 1 September 2025. The adjustments are intended to expand eligibility for promotional loans supporting climate-friendly and space-saving residential buildings.
According to KfW, kitchens and kitchen-diners will now be classified as living spaces under the new rules. This change reflects common building practices, particularly in compact apartments with open-plan layouts. "Going forward, kitchens and open-plan kitchens will be regarded as living spaces, even if they are part of the living room, for example. The programme is therefore adapted in line with building practice that often features open-plan kitchens in compact apartments. The floor area may be slightly higher than specified. This increases the flexibility of housing design for developers."
The programme will also see an 18 percent increase in the construction cost benchmark. As a result, more projects can remain within the set cost limit and qualify for support. "The 18 percent increase in the construction cost benchmark means that more projects than before can be completed within the cost limit. This provides planning certainty for developers and ensures that more affordable housing is created."
Both adjustments aim to make it easier for private individuals, companies, and other investors to access funding through their usual banks beginning on 1 September 2025. Existing promotional loans may also benefit from these new conditions if evidence is provided after project completion.
Further details about these changes will be available from KfW on 1 September 2025.