Germany's Bold Plan to Turn Empty Offices Into 60,000 New Homes
Germany's seven largest cities could ease housing shortages by turning empty office spaces into homes. A recent analysis suggests these unused areas might hold space for around 11,000 new apartments. In theory, the potential could even reach 60,000 units if all suitable buildings were repurposed.
To encourage conversions, the government plans a new funding scheme called *Gewerbe zu Wohnen* (Commercial to Residential). Set to launch in summer 2026, it will offer financial support for turning heated, non-residential buildings into housing.
The programme aims to tackle three key issues: high vacancy rates in commercial properties, a shortage of housing, and the need for climate-friendly renovations. Investors converting buildings into flats can receive grants of up to €30,000 per unit, with no repayment required. However, the total funding per company is limited to €300,000.
Not all office buildings will make ideal homes. Some lack nearby amenities like shops, schools, or green spaces. Others may need expensive modifications, as commercial layouts often differ from residential needs. For example, open-plan offices might require new walls, kitchens, and bathrooms. Renovations must also meet strict energy standards—specifically, the *Efficiency House 85 Renewable Energy* level. Listed buildings, however, are exempt from these rules. The push for conversions comes as construction costs have risen sharply in recent years, making new builds less affordable. While the federal scheme is still in preparation, some cities and states have already started their own initiatives. These local programmes vary in scope but share similar goals: reducing empty properties and increasing housing supply.
The Gewerbe zu Wohnen programme could transform thousands of vacant offices into much-needed homes. Grants of up to €30,000 per unit will help offset conversion costs, though strict energy rules and location challenges remain. If successful, the scheme may provide a practical solution to housing shortages while cutting down on unused commercial space.
