From July 1, 2026, property investors and owners can apply for a federal grant of up to €30,000 per new residential unit created by converting vacant commercial space. The program is called “Gewerbe zu Wohnen” (GzW) and is funded with €300 million for 2026.
Why the German government offering a 30,000€ grant?
Office vacancy across Germany’s major cities has doubled since 2019. The vacancy rate in the seven largest German office markets rose from around 2% in 2019 to 5.6% in 2024.
This is 11 million square metres of unused space.
In Berlin, Frankfurt, Munich, and Hamburg alone, an estimated 1.8 million square metres of office floor space is considered suitable for residential conversion.
At the same time, Germany is building far fewer homes than it needs. New construction is on course to fall below 200,000 units in 2026. This is half the 400,000 annual target the government set.
The GzW program is the federal government’s attempt to use one problem to solve the other.
Federal Housing Minister Verena Hubertz (SPD) announced the program’s details in an April press release from the Federal Ministry for Housing, Urban Development and Building (BMWSB).
Who can apply for the 30,000€ grant (GzW) and what is funded?
Here are the requirements to be eligibile for applying for the 30k grant.
- The grant is open to any investor or owner-occupier who converts a heated non-residential building or section of a mixed building into at least one new flat.
- This includes offices, retail units, hotels, and other commercial premises.
- The property must not be used for residential purposes at the time of application.
- The new flat must meet at least Efficiency House 85 (EH-85) standard on completion.
The grant is calculated as up to 30% of eligible costs, capped at €100,000 per new residential unit. That produces the headline figure of €30,000 maximum per flat.
Per company, the total grant is capped at €300,000. This ceiling exists because the program is structured under EU de minimis state aid rules. This set a fixed upper limit on public subsidies to any single business.
Eligible costs include:
- Structural adaptation of the building fabric for residential use
- Floor plan changes and internal fit-out
- Redesign of outdoor areas
Energy efficiency costs, such as insulation, new heating systems, window replacement are explicitly not eligible under this program. They are funded separately through the federal energy efficiency programs (BEG).
You an however, combine the 30k grant (GzW) with BEG funding.
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What is EH-85 energy standard?
EH-85 means the building’s primary energy demand cannot exceed 85% of the demand of a reference building built to current minimum standards.
In practice, converting an older commercial building to EH-85 requires significant investment in the building envelope and heating system. These costs are not covered by the GzW grant.
But you can fund them via BEG programs.
For listed buildings (Baudenkmale) and other architecturally significant structures, you can request exemptions from the EH-85 requirement.
How do you apply for the 30,000€ grant (GzW)?
You must apply via KfW, Germany’s state development bank. The application portal opens on July 1, 2026. You can find the program page at KfW product 266.
NOTE: You must submit and receive approval for your application before signing any construction or supply contracts. Starting work before receiving formal funding approval (Förderzusage) disqualifies your project from the grant. You can perform the planning and architectural consultancy before the application. But the moment you sign a building contract, the window closes.
What this means if you own commercial property in Germany?
If you own a vacant or underperforming commercial property, this program might be for you.
The key steps before July 1:
- Assess whether your property meets the basic eligibility conditions
- Commission architectural and energy consultancy now
- Prepare your application materials so you can submit on or shortly after July 1
- Do not sign any construction contracts before receiving your KfW approval
