Heat protection increases property value – retrofit correctly and secure funding now

3 min. read
Heat protection increases property value – retrofit correctly and secure funding now

Extreme summer temperatures have long ceased to be exceptional in Germany, presenting owners, managers and tenants with new challenges. At the same time, heat protection should be seen as an investment in a building’s fabric, usability and long-term viability, according to the German Property Federation (IVD).

Which measures make sense – and where should you start?

Summer heat protection begins with the façade and extends to windows and shutters, green roofs and solar-control glazing. External shading such as awnings, external Venetian blinds and shutters is particularly effective. Light-coloured façade paints and roof coatings can also help reduce heat absorption. On flat roofs, green roofing not only benefits the climate but also extends the life of the building fabric. Controlled domestic ventilation with heat recovery can also improve air quality, including during hot weather.

Recommendations for owners’ associations and landlords

Owners’ associations should take a proactive approach to structural heat-protection measures. The IVD points out that numerous government funding programmes are available for such measures.

External solar-shading systems, including smart controls, are eligible for support from the Federal Office for Economic Affairs and Export Control (BAFA) and KfW. Under BAFA’s individual measures scheme (BEG EM), a grant of 15 per cent is available on eligible costs of up to 30,000 euros per year and residential unit. If an individual refurbishment roadmap (iSFP) is incorporated, the grant can rise to as much as 20 per cent, enabling funding of up to 12,000 euros.

KfW also offers low-interest supplementary loans of up to 120,000 euros per residential unit through programmes 358/359, particularly for owner-occupiers with annual household income of up to 90,000 euros. Those carrying out more extensive refurbishment and achieving a KfW Efficiency House standard can obtain loans of up to 150,000 euros per unit and repayment grants of up to 20 per cent through programme 261.

In addition to solar-shading measures, eligible work includes green roofs, insulation, window replacement and the installation of energy-efficient ventilation systems, as well as energy advice and construction supervision services. As an alternative to these programmes, owners can also claim the tax relief for refurbishment, with up to 20 per cent of refurbishment costs deductible for tax purposes.

An increase in value rather than a cost factor

When properly planned and carried out, heat protection contributes not only to the quality of the living environment, but also to a property’s long-term value. “Properties that remain comfortable to live in even when it is 35 degrees in the shade will be in greater demand in future, and this will also be reflected in their price,” concludes IVD spokesperson Stephen Paul.