Germany’s Federal Minister for Economic Affairs and Climate Action Robert Habeck has revealed that the government plans to place strict building insulation requirements on hold indefinitely, reported Reuters.

This move is part of an effort to help the country’s struggling construction industry and kerb the effects of rising interest rates.

The comment from the minister was made ahead of an upcoming meeting between Germany’s building industry and government officials, including Chancellor Olaf Scholz.

Habeck said: “High-interest rates and inflation are a heavy burden for the construction industry.

“I don’t see this new standard being introduced in this legislative period [late 2025].”

The decision could also imply a waiver of the Efficiency House 40 energy-saving standard for new buildings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The news agency also stated that industry executives are calling for the termination of sales tax on real estate transactions and the establishment of a government-backed credit programme to support borrowers in reducing excessive interest rates.

Prices of residential property in Germany fell an average of 9.9% in the second quarter of this year, according to the Federal Statistical Office of Germany (Destatis).

The figure is seen as the largest drop in residential property prices since records of it began.

The country, whose population has lately increased as millions of people migrate to the nation, plans to build 400,000 apartments each year to supplement the problem, but has so far failed to meet this goal.

Last month, Destatis reported that the number of apartments being constructed in the country fell in the first half of this year.