Law & Politics
Germany's heating law and Berlin real estate
Building Energy Act 2024: What changes for Berlin property owners
The GEG is in effect. New heating systems must run on 65% renewable energy. For Berlin's old building stock, an expensive transition with consequences for property values.
Peter Guthmann
What the GEG 2024 requires
Germany's Building Energy Act (Gebäudeenergiegesetz, GEG) has been in effect since January 2024. The key rule: newly installed heating systems must run on at least 65 percent renewable energy. For new buildings, this applies immediately. For existing buildings, transition periods are tied to each city's municipal heat planning. Existing heating systems may continue to operate and be repaired. The transition is gradual, targeting climate neutrality in the building sector by 2045.
Berlin has one of the oldest building stocks in Germany. According to the 2011 census, more than half of Berlin's households were heated with gas or oil. Modernization has happened since, but boroughs like Charlottenburg-Wilmersdorf, Pankow, and Neukoelln still have a high share of pre-war buildings with individual apartment heating systems. Converting these to central systems is technically complex and expensive. According to the Federal Environment Agency, a household with oil heating and 120 square meters of living space produces around 4.7 tons of CO2 per year. With nearly 150 million tons of CO2 from building heating across Germany, the road to climate neutrality is long.
Impact on Berlin's real estate market
Location and condition remain central to property valuation. But energy efficiency is gaining weight. Buyers factor renovation costs into their offers. A poorly insulated building with an old gas boiler sells for less than a comparable property with a heat pump or district heating connection. This trend is visible in current market data and affects apartments and apartment buildings alike.
An individual renovation roadmap (Individueller Sanierungsfahrplan, ISFP) from a certified energy consultant shows which measures make sense and what they cost. Federal funding programs (BEG) cover part of the investment. Acting early pays off through lower operating costs and a more stable resale value.