The so-called "Heating Act" (Building Energy Act, GEG) has been the subject of debate since its introduction - and remains in place for the time being despite fierce criticism. The CDU/CSU is calling for its abolition as it is too bureaucratic and practically creates a fixation on heat pumps, although other renewable heating technologies are also officially permitted. The SPD also distanced itself from the law in retrospect, but it is still firmly anchored politically and legally.
Despite the latest interest rate cuts by the European Central Bank (ECB), the cost of real estate financing continues to rise. This development surprises many, as it is generally expected that falling key interest rates will also lead to lower construction interest rates. However, the reality shows a different picture: construction interest rates are more closely aligned with government bond yields, which are currently on the rise.
In 2025, the real estate industry is facing significant changes. New regulations and rising costs will affect housing, as will the focus on energy-efficient construction. The challenges will affect private households as well as the construction industry, which will be heavily burdened by additional investment and bureaucracy.
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