Guide
Government support for property ownership in Berlin
Property subsidies in Berlin 2021: Government grants and loans for owners and investors
Berlin's property prices keep rising, but government programs from KfW, BAFA and the local IBB offer financial relief. An overview of the most important grants for buyers and owners in the capital.
Peter Guthmann
Buying or modernizing property in Berlin requires a substantial investment. Purchase prices have risen significantly in recent years. At the same time, both the federal government and the state of Berlin offer a range of funding programs that reduce the financial burden for owners and buyers.
KfW programs: Low interest loans from the federal government
The KfW development bank provides low interest loans of up to 100,000 euros through its home ownership program (124) for the purchase or construction of owner occupied property. The interest rates are well below market level, which noticeably reduces the monthly burden. In addition, the federal government supports families through the Baukindergeld (KfW 424): 12,000 euros per child, paid out in ten annual installments of 1,200 euros. This grant does not need to be repaid.
Investitionsbank Berlin: Local funding
The Investitionsbank Berlin (IBB) is the state's development bank and cooperates with the KfW. It also offers its own programs tailored to the Berlin market. The IBB supplementary loan can close financing gaps between the KfW loan and the actual purchase price. For existing property owners, the IBB modernization programs are particularly relevant: they fund energy efficient retrofitting, age appropriate conversions, green roofs and solar battery storage.
BAFA: Grants for energy efficient retrofitting
Owners looking to improve the energy efficiency of existing properties can apply for grants through the Federal Subsidy for Efficient Buildings (BEG) at the Federal Office for Economic Affairs and Export Control (BAFA). Individual measures such as facade insulation, window replacement or heating optimization are subsidized at up to 20 percent of investment costs. Replacing an oil heating system can receive up to 45 percent. These modernizations increase the value of apartments in Berlin and make them more attractive to tenants, especially in central boroughs like Mitte.
Combining subsidies strategically
KfW loans, Baukindergeld, BAFA grants and IBB programs can often be combined. Anyone who reviews all available options can significantly reduce financing costs when buying or modernizing property in Berlin. A thorough analysis of the available programs is worthwhile for every property financing decision in the capital.