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Billion-euro potential in existing buildings lies dormant

Building refurbishment as an economic driver with growth potential and 600,000 jobs

15.09.2025

Source: E & M powernews

New Prognos figures show: Building refurbishment could save millions and jobs. However, without a higher renovation rate, there is a risk of stagnation and job losses.

The German economy has been stagnating for three years. New calculations by the Swiss management consultancy Prognos AG on behalf of the German Business Initiative for Energy Efficiency (Deneff) now show that energy-efficient building renovation could play a key role in increasing growth and employment, Deneff announced on September 12. According to this analysis, 2.5 percent of gross domestic product (GDP) is already dependent on the refurbishment market.

The building sector currently provides around 600,000 jobs. The trades, construction industry and medium-sized technology companies are particularly affected. If the renovation rate increases to 1.7 to 1.9 percent, as required by climate policy, GDP could grow by up to 3.4 percent in the medium term.

Significance for investment and employment

The Prognos calculations show that the necessary investments in existing buildings would only have to increase by around 11 percent. This increase could be coupled with planned maintenance work. The additional expenditure could be refinanced through energy savings and value retention.

On the other hand, falling investment in refurbishment could lead to losses in added value and employment. The study emphasizes the labour market's dependence on stable investment conditions.

Henning Ellermann, Managing Director of Deneff, warns against uncertainty caused by constant discussions about the future direction. Ellermann: "Hardly anyone sees the regional investments, economic activity and jobs that are already associated with energy-efficient building refurbishment in every district. Germany will only get out of its economic and budgetary misery if we finally pull the lever for these investments."

The study therefore classifies building refurbishment not only as a climate policy measure, but also as an economic factor.

Author: Heidi Rpoder