Need for renovation in the Neuburg-Schrobenhausen district: 178 million euros needed!

Need for renovation in the Neuburg-Schrobenhausen district: 178 million euros needed!

There is an urgent need for action in the real estate industry in the Neuburg-Schrobenhausen district. According to an analysis by the Pestel Institute, many residential buildings are in need of renovation. Of a total of around 44,900 apartments in the district, around 21,200, i.e. almost 47%, are older than 45 years. Here it is simply “there is something going on” – the renovation must be started in order to meet the current requirements for energy efficiency.
The analysis also shows that energy consumption in the region is 5.1% below the national average. Important factors in this consideration are, above all, the age structure of the properties and their type, such as single-family and multi-family houses.

The financial challenges

A look at the numbers reveals that the annual renovation costs for the district are estimated at around 178 million euros and add up over a period of 20 years. These calculations are based on the study by the building research institute “ARGE for contemporary living”. In order to address these challenges, the Federal Association of German Building Materials Retailers is calling for more financial incentives for homeowners to promote the necessary renovation. President Katharina Metzger makes it clear how important it is that funding is provided for energy-saving renovations.

The issue is also highly discussed at the political level. The Federal Construction Minister Verena Hubertz (SPD) had promised to promote housing construction. Despite these promises, however, no noticeable progress has been seen so far. The focus should now be on saving energy, according to the Pestel Institute, which recommends measures such as roof insulation, installing new insulating windows and using heat pumps.

Climate neutrality in focus

At national level, the building sector is increasingly recognized as a key point in the fight against climate change. In 2023, private households in Germany required around 630 TWh of final energy, around 67% of which was used to heat residential buildings. This shows that the building sector is responsible for almost 28% of total final energy consumption in Germany, according to [bpb] information. When you consider that residential buildings will be responsible for around three quarters of the building sector's greenhouse gas emissions in 2023, it becomes clear how great the pressure to act is.

The Climate Protection Act aims to reduce emissions to 67 million tonnes of CO2 equivalents by 2030, which represents an enormous challenge. From 2024, new heating systems must be powered by at least 65% renewable energy; a measure that aims to make the building stock in Germany climate neutral by 2045.

Funding opportunities and social justice

There are already subsidies for energy-efficient renovations, which are intended to help owners with low incomes in particular. Grants of up to 30% are offered here. At the same time, however, questions arise about the distribution of modernization costs and social justice. Ultimately, we face challenges such as high costs, a shortage of skilled workers and long delivery times in the industry that need to be overcome.

The discussion about more flexible housing solutions and the conversion of empty buildings into living space shows that the issue is broader than mere renovation. In the long term, strategic planning is essential in order to overcome the housing shortage in many regions, including Neuburg-Schrobenhausen, and at the same time contribute to climate neutrality.