What does renovation cost in 2026? Cost overview by trade

Renovation in Germany costs between 200 and 2,500 euros per square metre of living space in 2026. Cosmetic renovations (painting, floors, doors) start at 200 to 500 euros per square metre. A standard refurbishment with bathroom, electrics and windows costs 700 to 1,100 euros per square metre. Full strip-out refurbishment or complete energy refurbishment costs 1,200 to 2,500 euros per square metre. For a typical detached house with 120 square metres, this means 24,000 to 300,000 euros before funding.

Key points at a glance

• Contractor prices have risen by over 46 % since 2020 — quotes from 3+ years ago are no longer a reliable benchmark (Destatis, 2025)
• Full strip-out refurbishment of a 120 m² house: 144,000 to 240,000 € — complete energy refurbishment up to 300,000 €
• KfW and BAFA fund energy efficiency measures at 15–70 % of costs, but applications must be submitted before awarding the contract
• Always allow a 10–15 % contingency: opening walls in existing buildings regularly reveals unexpected additional work

Renovation costs by trade at a glance

The Federal Statistical Office's construction price index shows a rise of over 46 per cent for maintenance work on residential buildings between early 2020 and late 2025.¹ The following table shows average 2026 figures based on current contractor prices in Germany, including materials and labour, excluding ancillary construction costs such as scaffolding or disposal.

Regional differences are not included. As a rule of thumb, in Munich, Stuttgart or Hamburg, you pay 15 to 25 per cent more than in rural areas of Saxony, Thuringia or Mecklenburg-Vorpommern. Prices also vary considerably within a city depending on business size and workload.

Some notes on individual trades: for Bathroom refurbishment , the price range is so wide because specification and material choices strongly influence the price. A level-access shower with large-format tiles and concealed fittings costs a good twice as much per square metre as a standard shower tray with 20x20 tiles. Labour costs differ very little.

For Heating replacement , a lump sum is customary because costs depend less on living space than on the type of system and building conditions. An air-to-water heat pump for a detached house costs 15,000 to 22,000 euros; a ground-source heat pump with drilling costs 25,000 to 35,000 euros. Radiator adaptations or underfloor heating may come on top if the existing system is unsuitable for low-temperature operation.

The Roof refurbishment figure in the table already includes between-rafter insulation. If above-rafter insulation is also wanted (better insulation performance, no loss of loft space), add 40 to 80 euros per square metre of roof area.

For Electrical installation , the question is whether only the meter cabinet and individual circuits are renewed or complete renewal is needed. In pre-1970 buildings, the entire electrical installation is often outdated: missing residual current devices (RCDs), outdated aluminium wiring and too few circuits for today's needs. Complete renewal generally means cutting chases, laying new cables and then plastering and painting. The follow-on plastering and decorating costs are not included in the 80 to 160 euros per square metre.

For Window replacement , the price depends heavily on the frame material. Triple-glazed uPVC windows cost 500 to 750 euros per standard window (approx. 1.3 x 1.3 m). Timber-aluminium windows cost 800 to 1,200 euros. In older buildings, adaptation work often comes on top: reveals must be widened or insulated because modern windows are deeper than the original single-glazed units.

What drives renovation costs in 2026?

Anyone comparing a 2026 quote with older cost estimates will find prices well above 2019 or 2020 levels. Three major factors explain most of this development.

Material costs and supply chains

The Federal Statistical Office's construction price index (BPR110) shows a rise of over 46 per cent for maintenance work on residential buildings between early 2020 and late 2025.¹ The extreme timber and steel price peaks of 2021 and 2022 have normalised, but the overall price level has not returned to pre-crisis levels. Insulation materials (EPS, mineral wool), copper and sanitary ceramics remain expensive.

Specifically: one square metre of EPS insulation board (WLG 035, 160 mm), which cost 18 to 22 euros in 2019, costs around 28 to 36 euros in 2026. Copper pipes for plumbing have risen from around 6 euros per linear metre to 9 to 11 euros. These material costs account for around 40 per cent of the total price of façade insulation and about 35 per cent of plumbing, heating and ventilation work.

Supply chains are now more reliable than in 2021 and 2022. Waiting several months for windows or heat pumps is now rare. However, many manufacturers have permanently factored increased production and energy costs into prices, so a return to old prices is not expected.

Skilled worker shortages and trade labour rates

The Zentralverband Deutsches Baugewerbe (ZDB) puts the shortage of skilled workers in the main construction sector at around 100,000.² In practice, owners notice this through long waits for contractor appointments and rising hourly rates.

In many regions, a skilled plumbing/heating/ventilation worker is priced at 55 to 70 euros per hour in 2026. Five years ago, it was 42 to 52 euros. Electricians are similar: hourly rates of 50 to 65 euros are now customary, and higher in urban areas. Tilers available for 40 to 48 euros per hour in 2020 now charge 50 to 62 euros.

These increases particularly affect labour-intensive trades. Labour accounts for 55 to 65 per cent of total bathroom refurbishment costs. For electrical installations, it is 50 to 60 per cent; for tiling, around 60 per cent. Trades with high material content (windows, heating systems) are less affected by wage increases but more by material prices.

In economically weaker regions, waiting times are shorter and hourly rates lower. If renovating in rural eastern Germany, you can often find a contractor sooner and pay 15 to 20 per cent less than in major urban areas.

New energy standards and GEG requirements

The 2024 version of the German Buildings Energy Act (GEG) tightens requirements for existing buildings undergoing substantial renovation.⁵ The so-called component rule states that anyone renewing more than 10 per cent of a component must meet current minimum energy standards.

For façade insulation, this means a U-value of at least 0.24 W/(m²K), generally requiring 14 to 18 cm of insulation. Ten years ago, a U-value of 0.35 was sufficient, achievable with 8 to 10 cm of insulation. Thicker insulation means more materials and labour because reveals become wider and window junctions more complex.

For heating replacement, the 65-per-cent renewable energy requirement has applied since 2024 to new buildings in new development areas. From 2026, municipal heat planning also applies to existing buildings in cities with 100,000 or more residents (from 2028 for all municipalities). A standalone gas condensing boiler is then no longer a permissible option there. Heat pumps, district heating connections or hybrid solutions cost two to three times as much to purchase as conventional gas heating.

Stricter requirements also apply to windows: the required Uw-value is a maximum of 1.3 W/(m²K), which in practice requires triple glazing. Double glazing is no longer permissible for complete replacement. The premium over double glazing is 50 to 100 euros per window.

An often overlooked cost: GEG requirements can trigger follow-on work. Thicker façade insulation requires wider windowsills and deeper reveals. New triple glazing changes dew-point behaviour, potentially requiring controlled domestic ventilation to prevent mould. These extra costs often do not appear in the initial quote and arrive as variations.

Renovation costs by project type

Where exactly do you fall within the range of 200 to 2,500 euros per square metre? This mainly depends on how extensive the renovation is — and above all, whether you are prepared to work inside the walls. As soon as services are rerouted, walls opened or shafts renewed, costs rise sharply. The distinction between standard refurbishment and full strip-out refurbishment is a decision about depth of intervention rather than cost.

The following table gives indicative figures for a typical detached house with 120 m² of living space, built around 1975, with normal building fabric.

These figures relate to a detached house. For owned flats, roof and façade are excluded (common property, funded through the homeowners' association (WEG) reserve), so costs per square metre are usually 20 to 30 per cent lower.

For pre-1960 buildings with deteriorated fabric, however, costs may exceed the stated upper limits. Typical cost drivers: asbestos or man-made mineral fibre remediation (hazardous materials disposal costs), missing basement waterproofing, unsound façade render or rotten timber joist floors.

The crucial question between standard refurbishment and full strip-out refurbishment is often: will the walls be opened? As soon as services are routed inside walls, installation shafts renewed or layouts changed, costs rise sharply. Drylining and plastering after services are installed account for a substantial share of the extra cost. If existing electrics and plumbing can be retained (and still comply with regulations), savings of 30 to 40 per cent compared with full strip-out refurbishment are readily achievable.

Another factor affecting cost is whether you remain in the house during renovation or move out. A full strip-out refurbishment of an occupied house generally takes 20 to 30 per cent longer because contractors must accommodate residents and cannot work in all rooms simultaneously. This extends the programme and increases total costs. On the other hand, you save the rent for temporary accommodation, which can quickly reach 4,000 to 9,000 euros over 3 to 6 months of construction.

How to save on renovation

Reducing costs does not mean compromising quality. There are sensible ways to lower the total price without paying more later.

1. Obtain several quotes and compare them properly. Three quotes are the minimum. Ensure they all use the same bill of quantities, otherwise you are not comparing like with like. A common problem: one quote has a detailed 40-item breakdown, another a lump sum on two pages. The lump sum looks cheaper but omits work that later becomes variations. How to review a construction quote correctlyis explained in the linked article.
2. Combine trades and coordinate schedules. Having electricians and plumbers on site together saves site setup and coordination costs. For a bathroom refurbishment including electrics and tiling, a general contractor or coordinating business can often save 5 to 10 per cent compared with separate contracts. However, separate contracts give you more control over individual prices.
3. Use DIY work selectively. You can do demolition, clearing, simple painting and removing old floor coverings yourself. This saves contractor hours otherwise spent on unskilled work. Leave electrics, gas and structural work alone: mistakes cost more than the saved contractor fee, and improper work invalidates insurance cover.
4. Use seasonal price differences. Contractors often have more capacity in winter (November to February) because outdoor work pauses. Interior work such as bathrooms, electrics or floors can be scheduled well then. Some businesses even offer winter discounts to keep staff occupied. Façade and roof work, however, depend on weather and are only possible to a limited extent in winter.
5. Apply for funding before work starts. Most programmes (KfW, BAFA) require an application before awarding the contract. Commissioning the contractor first and applying afterwards forfeits eligibility. Allow 4 to 8 weeks' lead time. KfW loan processing currently takes 3 to 6 weeks; BAFA grants are often faster, but you should not start without approval there either.

When comparing quotes, scrutinising individual items is particularly worthwhile. Lump-sum quotes without quantity breakdowns are a warning sign because they prevent transparent price comparison and increase variation risks. Check that all relevant ancillary services are included: site setup, protection of existing surfaces, disposal of old materials, final cleaning. Each item may be only 500 to 2,000 euros, but together they quickly reach 5 to 8 per cent of total costs. More on how to avoid additional chargesis available in the linked article. Another guide explains which specific warning signs indicate an overpriced quote and what to look for.

Funding in 2026: KfW, BAFA and regional programmes

Applied for correctly, funding can cover up to a third of total costs. The most common mistake: owners award the contract and then apply. That is too late. KfW and BAFA require the funding application before the contract is awarded — otherwise eligibility lapses entirely.

Programme details change regularly, but the basic structure has remained stable since 2024. The main options at a glance:

• KfW 261/262 (Federal Funding for Efficient Buildings): Loans of up to 150,000 euros per residential unit with a repayment subsidy of 5 to 25 per cent, depending on the Efficiency House level achieved. For an Efficiency House 70, this is up to 15,000 euros in subsidy; for an Efficiency House 40, up to 37,500 euros. Requirements: involvement of an energy efficiency expert (dena list) and application before construction starts. Current terms are well below market interest rates, further reducing the overall burden.
• BAFA individual measures (BEG EM):⁶ Grants for individual trades without complete refurbishment. Façade insulation: 15 per cent of eligible costs (max. 30,000 euros per residential unit, with a 5-per-cent bonus for an individual renovation roadmap). Heat pump replacement: basic funding of 30 per cent plus bonuses of up to 20 per cent (income bonus for households earning up to 40,000 euros annually, speed bonus until the end of 2028), with maximum total funding of 70 per cent on eligible costs up to 30,000 euros. For a 20,000-euro heat pump, this can mean a grant of up to 14,000 euros.
• Tax deductions (§ 35c EStG):⁷ As an alternative to direct funding, owners of owner-occupied housing can deduct 20 per cent of renovation costs from their tax liability over three years (7 + 7 + 6 per cent). Maximum: 40,000 euros in tax relief per property. This is particularly worthwhile with a high personal tax rate and measures ineligible for BAFA funding. Cannot be combined with KfW or BAFA for the same measure.
• Regional programmes: Many federal states and municipalities offer additional grants. Bavaria funds municipal energy advice, Hamburg has special programmes for Gründerzeit façades (up to 30 euros/m² subsidy), and NRW offers progres.nrw for building renovation. Check the BMWK funding database (foerderdatenbank.de) for programmes in your region. These regional funds are often less well known and therefore not fully used.

Tip: a qualified energy adviser (dena expert list) is required for most KfW and BAFA programmes.⁸ This costs 1,500 to 2,500 euros for a detached house, with 50 per cent funded separately through BAFA (max. 1,300-euro grant). The adviser prepares the individual renovation roadmap (iSFP), securing your 5-per-cent bonus on individual measures.

Cost example: renovating a detached house

Abstract prices per square metre only help so far. Here is a specific practical calculation — based on typical project types we regularly review.

Starting point: detached house built in 1978, 130 m² of living space, basement, pitched roof. The owners plan comprehensive modernisation with energy upgrades.

The example shows that even with funding, comprehensive renovation remains a six-figure investment. That makes carefully reviewing the quotes obtained all the more important. Missing items, unclear specifications or inflated unit rates only become apparent through detailed analysis.

Also bear in mind that actual costs almost always exceed the original quote. The Verband Privater Bauherren (VPB) recommends always allowing a contingency of 10 to 15 per cent of the contract value for renovation projects.⁹ In existing buildings, opening walls or floors frequently reveals surprises: rotten beams, damp masonry, old installations that do not comply with standards. This extra work cannot be identified in advance and is charged as variations.

Frequently asked questions about renovation costs

What does a complete refurbishment cost per square metre?

Allow 1,200 to 2,000 euros per square metre of living space for a full strip-out refurbishment involving all trades. Adding comprehensive energy upgrades (façade, roof, heat pump) raises costs to 1,500 to 2,500 euros per square metre. For a 120 m² house, this means a budget of 144,000 to 300,000 euros before funding.

Is renovation worthwhile or is a new build cheaper?

New-build costs in 2026 are 2,500 to 4,000 euros per square metre (excluding land). While renovation costs remain below 60 to 70 per cent of new-build costs, renovation makes more economic sense. For full strip-out refurbishment of a house with sound basic fabric (foundations, load-bearing walls, roof structure intact), this is almost always the case. In addition, a new build requires demolition costs (80 to 150 euros/m²), building permission and often a longer construction period. Only severe structural or foundation damage, hazardous materials (e.g. asbestos throughout the building fabric) or a fundamentally unsuitable layout shift the calculation towards a new build.

How long does renovation take?

A cosmetic renovation is completed in 2 to 4 weeks. Standard refurbishment takes 2 to 4 months; full strip-out refurbishment takes 4 to 8 months. Complete energy refurbishments involving façade and roof often take 6 to 12 months because individual trades depend on each other: roof first, then façade, then windows within the insulated building. Allow extra contingency time for an occupied house because individual rooms are periodically unusable. For bathroom refurbishment while living in the property, plan at least a temporary washing facility.

Which renovation adds the most value?

Bathroom refurbishment has the biggest influence on property value (an increase of around 8 to 12 per cent of the property's value). New windows increase value by 5 to 8 per cent, façade insulation with visual improvements by 7 to 15 per cent. Painting offers the best cost-benefit ratio: low investment but a much better impression during viewings and valuations. Energy refurbishment improves the energy performance certificate, measurably increasing market value in many regions. According to an IW Köln study, unrenovated buildings with poor energy ratings (G or H) now achieve sale prices 15 to 25 per cent below renovated properties.³

Can I deduct renovation costs for tax purposes?

Yes, under § 35c EStG, owners of owner-occupied housing can claim 20 per cent of energy refurbishment costs against tax. This is spread over three years (7 per cent, 7 per cent, 6 per cent). Maximum deduction: 40,000 euros in tax relief per property. Requirements: the building must be at least 10 years old and a specialist contractor must carry out the work and certify it using the official template. This option cannot be combined with KfW or BAFA grants for the same measure. It is worth calculating both routes: with a high personal tax rate, the tax deduction may deliver more than a 15-per-cent BAFA grant.

Conclusion: calculate renovation costs realistically

Renovation in 2026 is a substantial investment. Costs depend heavily on scope: cosmetic renovations start at 200 euros per square metre, while complete energy refurbishment can cost up to 2,500 euros per square metre. Available funding (KfW, BAFA, tax deductions) covers part, but the owner's contribution remains substantial.

Before awarding the contract, obtain at least three comparable quotes and check them item by item. Particularly for five- or six-figure sums, an independent review of the contractor's quote is worthwhile to identify missing items, unclear specifications or inflated unit rates.

With the free Cleverbauen24 Quickcheck you receive an initial assessment of your construction quote within minutes. Upload your quote as a PDF and find out whether prices are in line with the market, important items are missing and what to check before signing.

Sources

1. Destatis – construction price index BPR110: residential building maintenance, Q1 2020–Q4 2025
2. ZDB, Zentralverband Deutsches Baugewerbe – annual report 2024/2025
3. IW Köln, Sagner/Voigtländer – energy refurbishment and property value
4. Munich Chamber of Crafts – construction trade costing data
5. German Buildings Energy Act (GEG) – 2024 version, component rule § 48
6. BAFA – Federal Funding for Efficient Buildings, individual measures (BEG EM), as at 2025
7. § 35c EStG – tax relief for energy measures in owner-occupied housing
8. dena – energy efficiency expert list: required advisers for KfW/BAFA programmes
9. VPB, Verband Privater Bauherren – recommendation for 10–15 % contingency on renovations