Decarbonizing German Homes Seen As Economic Lift For Property Sector

A report by insurer Allianz and Allianz Trade indicates that the German real estate sector is expected to benefit from housing decarbonization measures, such as through renovations, replacement of heating systems, and other energy efficiency improvements. By 2050, especially from 2040 onwards, as energy efficiency increases and operating costs decline, the demand for such measures is expected to rise, leading to an increase in value creation for the German real estate industry by 1 trillion euros. Allianz's scenario analysis shows that Germany is expected to create 107,000 new jobs.

 

In Germany, France, Italy and Spain, achieving climate neutrality for residential buildings by 2050 would require a total investment of 3 trillion euros, and energy conservation can only partially cover this cost. The report states: "Carbon prices have to play a pivotal role in bridging the investment gap." However, a sufficiently high price level (approx. €350/tCO₂) "seems politically and socially infeasible." Therefore, national subsidies and a reasonable regulatory framework are crucial.