New KfW Subsidy "Commercial to Residential": Up to €30,000 per Unit
What is being funded?
The subsidy covers converting heated buildings or parts of buildings previously not used for residential purposes into housing – for example, vacant office or retail space. At least one new residential unit must be created. Eligible measures include:
- Adjustments to the building structure
- Changes to the floor plan
- Interior renovation
- Redesign of outdoor areas, including de-sealing surfaces
The newly created residential units must reach at least the "Effizienzhaus 85 Erneuerbare Energien" (EH 85 EE) energy efficiency standard.
How much is the subsidy?
The grant covers 30% of eligible costs, capped at €100,000 per residential unit – equivalent to a subsidy of up to €30,000 per newly created apartment. For 2026, the federal government has allocated a total of €300 million for the program. If demand is high, the funding pool could be exhausted before year-end.
Who is this relevant for?
The program primarily targets investors and owners of commercial properties who want to repurpose existing space into housing – for example, amid the structural shift affecting office and retail space. For typical homebuyers or people arranging financing for a new build, it's usually not directly applicable, but it can matter when planning investment properties or multi-family buildings with conversion potential.