🙋 Today, I’d like to build on the data shared in last week’s post and provide further insights into energy efficiency measures for buildings that are gaining traction in Germany.

👨‍⚖️ The new Building Energy Act (Gebäudeenergiegesetz) focuses on both residential properties and corporate real estate, aiming to reduce energy consumption in a sector responsible for 35% of Germany’s total final energy use. One of the key measures involves insulating top-floor ceilings or roofs—an essential step to lower energy waste in buildings. However, the cost of such measures cannot be overlooked.

💶 So, how much money do we need? If we consider the total roof surface area exceeding 50 m²—estimated at 3.8 billion m²—and assume that 70% of these roofs require insulation retrofitting, we’re looking at 2.7 billion m² that need to be addressed. Applying an average construction cost of €500 per m², the total investment required reaches an astounding €1.35 trillion(!).

🧮 This rough calculation underscores the enormous financial resources needed just to insulate buildings in Germany. The challenge here is that this represents “dead capital”—an investment that doesn’t directly generate returns. For residential and corporate real estate, the likely outcome may involve increased rents to offset costs, as public funding and subsidies will likely only cover a fraction of the expense.

🧐 So, what’s your take? How can we tackle this challenge and avoid hitting a dead end? I’d love to hear your thoughts.