The federal government's 2030 Climate Package puts pressure on the building sector. CO2 emissions are to fall from 120 to 72 million tonnes per year. In Berlin, around 65 percent of total emissions come from households, commerce and services. That is where the greatest savings potential lies. But Berlin's red-red-green state government faces a contradiction: climate protection and tenant protection, in their current form, cannot be pursued simultaneously.
Conservation areas block renovations
In boroughs such as Neukoelln, Friedrichshain-Kreuzberg or Pankow, the conservation statutes (Section 172 of the Building Code) prevent most energy-efficiency measures that go beyond the statutory minimum. Facade insulation, window replacements or heating system upgrades become a bureaucratic obstacle course. For owners looking to invest in their apartments in Berlin, this acts as a brake on investment.
Waiver agreements: 20 years of standstill
When acquiring property in a conservation area, buyers must sign a waiver agreement with the borough to avert the pre-emption right. This agreement excludes energy-efficiency modernizations that are not legally mandated for a period of 20 years. Even replacing defective windows can become a problem if it is classified as an energy improvement. A climate-neutral building stock becomes a distant prospect.
Rising costs for tenants
The contradiction has tangible consequences: when renovations do not happen, energy costs rise. The CO2 pricing from the Climate Package is passed through to tenants, because landlords cannot or are not permitted to make their buildings more efficient. The net cold rent, frozen by the rent cap, gets eaten up by rising ancillary costs.
For investors, the unclear political situation means increased risk. The market trajectory is currently driven less by economic factors than by regulatory decisions whose long-term consequences for the condition of Berlin's building stock are hard to predict.
Disclaimer
This article is for general information only and does not constitute tax or legal advice. The content does not replace individual consultation with a tax advisor or attorney. No liability is assumed for accuracy or completeness.
