renovation of old buildings

Renovating old buildings: how to turn an old house into a home again

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Contents

The charm of old houses is undeniable - high ceilings, stucco, real wood floors and historic façades tell stories of times gone by. But anyone who owns or wants to buy such a gem is often faced with the challenge of a comprehensive renovation. Renovation of old buildings.

Whether dilapidated pipes, inefficient heating systems or energy-related defects - refurbishment is not just a question of aesthetics, but also of cost-effectiveness and future-proofing.

In this article, you will find out what owners and buyers should look out for, what costs and obligations arise and which subsidies can help to bring an old house up to modern standards.

The most important facts in brief

  • Renovation of old buildings means bringing older buildings up to date in terms of technology, energy efficiency and appearance - without losing their historical charm.
  • The Costs are usually between 800 and € 1,800 per square metredepending on condition, scope and equipment.
  • After the Building Energy Act (GEG) there is a risk for certain components Remediation obligatione.g. for boilers or roof insulation.
  • Subsidies from KfW and BAFA can significantly reduce the financial burden - especially for energy-related measures.
  • A careful Planning and prioritisation (first roof, façade, windows, heating) helps to avoid unnecessary costs.
  • A successful refurbishment not only increases the Living comfortbut also the Value of the property - an important aspect if a later Sale in Berlin is planned.
  • Before making major investments, it is worth Professional property valuationto correctly assess the need for refurbishment and the market value.

What is an old building refurbishment?

Under a Renovation of old buildings is the comprehensive refurbishment and modernisation of older buildings to bring them up to date in terms of technology, energy efficiency and appearance. This involves not only cosmetic repairs, but often also replacing load-bearing components, installations or insulation.

Whereas with a Renovation the main focus is on the visual appearance - for example by painting, laying floors or installing new doors - the Refurbishment significantly deeper. It concerns measures that Building fabric, safety and energy efficiency of a house.

Typical features of an old building in need of refurbishment:

  • Outdated heating systemsoften with high energy consumption
  • Insufficiently insulated roofs or facadesthat cause heat loss
  • Moisture damage in cellars or exterior walls
  • Old electrical installations with insufficient power or safety risks
  • Simple window glazingwhich offers hardly any sound insulation or thermal insulation

One example:
A house from the 1950s still has oil heating and single-glazed wooden windows. Thanks to a comprehensive Energy-efficient refurbishment of old buildings - i.e. replacing the heating system, insulating the façade and replacing the windows - can reduce energy consumption by up to 60 per cent lower.

This makes it clear that renovating an old building is not just a beauty treatment, but a sustainable investment in the future of the building.

Refurbishing or renovating an old building - what's the difference?

In everyday life, the terms Renovation and Refurbishment are often equated. However, there is a clear technical difference:

  • Renovate means the house visually enhance.
  • Refurbish means, Technical or structural defects and the Securing substance in the long term.

The following overview shows the most important differences:

Area / measureRenovation (visual refreshment)Refurbishment (structural repair)
Walls & floorsPainting, wallpapering, new floor coveringRenewal of screed, moisture protection, mould removal
Windows & DoorsPainting or replacing individual sashesComplete replacement to improve soundproofing and insulation
Heating & building servicesMaintenance or thermostat replacementNew heating system, pipework and pipe renovation
Façade & roofCleaning, paintingInsulation, new roofing, sealing, thermal insulation measures
Interior fittingsModernisation of kitchen, bathroom or stairsFundamental renewal of sanitary and electrical installations

In short:
A renovation embellishes - a refurbishment maintains and improves the value of the building. So if you want a Renovate an old house not only invests in comfort, but also in durability and energy efficiency.

Costs and budget planning for the renovation of old buildings

The Costs of renovating an old building can vary greatly - depending on the condition of the building, year of construction, scope of the measures and desired standard. Roughly speaking, the older and unrenovated a house is, the higher the refurbishment costs.

Average cost per square metre

In practice, the total costs are usually between 800 and €1,800 per square metre of living space. In the case of listed buildings or energy-demanding projects, they can also go beyond this.

Typical cost examples by measure

Reorganisation measureAverage costs (per m² / unit)Notes
Roof insulation & new roofing180 - 300 € / m²High energy savings, often eligible for subsidies
Facade insulation & plaster120 - 250 € / m²Combination of thermal insulation and appearance
Window renovation (triple glazing)500 - 900 € / windowSaves up to 20 % heating costs
Heating modernisation (e.g. heat pump)12.000 - 25.000 €KfW and BAFA funding possible
Renew electrical installation80 - 150 € / m²Safety aspect, important for older cables
Complete bathroom refurbishment10.000 - 25.000 €Depending on equipment and area
Interior plastering, painting & floor coverings50 - 120 € / m²Visual enhancement (renovation)

Tip: Before you invest in a comprehensive refurbishment, it is worthwhile professional Property valuationto assess the current market value and the potential after completion of the work.

Cost drivers and potential savings

  • Condition of the building: The bigger the refurbishment backlog, the more expensive the measures.
  • Choice of building material: Sustainable materials are often more expensive, but offer long-term benefits.
  • Personal contribution: If you are a skilled craftsman, you can do simple work (e.g. interior work) yourself.
  • Subsidies: State subsidies can significantly reduce the financial burden - more on this in the next section.

Funding opportunities and tax advantages

One Renovation of old buildings can quickly lead to high costs - making it all the more important to utilise all available Support programmes and tax benefits to know. The state supports energy-efficient refurbishments and modernisations with attractive subsidies and low-interest loans.

Important funding programmes

Programme / InstitutionPromotionPrerequisites
KfW (Reconstruction Loan Corporation)Up to 25 % Subsidy or Low-interest loan about "Residential buildings - credit (261)"Energy-efficient refurbishment to EH standard or individual measures
BAFA (Federal Office of Economics and Export Control)15-20 % Subsidy for heating modernisation (e.g. heat pumps, biomass, solar thermal)Replacement of fossil fuelled heating systems, installation of efficient systems
Tax incentives according to § 35c EStG20 % Tax bonus on refurbishment costs spread over 3 yearsOnly for owner-occupied properties, energy efficiency measures required
Monument protection fundingIndividual grants or tax reliefBuilding with listed building status, coordination with monument authority required

Sample calculation: Promotion in practice

Assuming that the energy-efficient refurbishment of an old building costs 120.000 €.

  • KfW grant (25 %) = 30.000 €
  • BAFA grant (15 % for heating modernisation, € 20,000) = 3.000 €
  • Tax bonus (§ 35c EStG, 20 % over 3 years) = 24.000 €

In total, up to 57,000 € subsidy and tax benefits achieve.
A combination is possible in some cases, but should be agreed with an energy consultant.

Tax advantages at a glance

  • Depreciation and amortisation (AfA)For rented properties, refurbishment costs can be amortised pro rata over several years.
  • Craftsman servicesUp to 20 % of labour costs (max. € 1,200 per year) can be claimed for income tax purposes.
  • Energy consulting costs: These are also eligible - often with up to 80 % Subsidy.

Tip: A certified energy consultant can help to combine the optimal programmes and prove eligibility for subsidies - a must for major renovations of old buildings.

old building renovation costs

Obligation to renovate and legal requirements when buying old houses

Who is a buys an old housenot only takes on charm and history - but often also a Remediation obligation. This results from statutory regulations, in particular the Building Energy Act (GEG)which prescribes minimum energy standards.

Remodelling obligations according to GEG

The JIT prescribes mandatory modernisation measures for owners of certain old buildings. These include in particular

Compulsory measureLegal basisDeadline / Note
Insulation of the top storey ceiling§ 47 GEGMandatory if uninsulated and accessible
Replacing old boilers§ 72 GEGBoilers over 30 years old (except condensing & low temperature technology)
Insulation of heating & hot water pipes§ 71 GEGApplies to unheated rooms
Energy certificate§§ SECTIONS 79-88 GEGObligation when selling or renting

These requirements apply also for new ownersif they have a Buy an old housethat has not yet been renovated. The deadline is usually two years after transfer of ownership.

Special features of monument protection

If a building is under Monument protectionThe rules apply in each case. The aim is to preserve the historical appearance - at the same time, many refurbishment measures are necessary. subject to authorisation.
Typical examples:

  • Replacement of windows only with listed design
  • Preservation of historical façade elements or roof shapes
  • Use of traditional materials for restorations

Note: For listed buildings there are Special subsidies and Tax depreciation of up to 9 % per annum for refurbishment costs - a considerable financial advantage for owners.

Example: Buying an old house - refurbishment obligation in practice

A buyer purchases a house built in 1965.

  • The Boiler dates from 1990 → Obligation to exchange within 2 years.
  • The Top storey ceiling is uninsulated → Insulation required.
  • In addition, a valid energy certificate are available.

Anyone who ignores these obligations risks fines of up to 50,000 euros.

Practical examples: Renovating an old house in stages

One Renovation of old buildings does not always have to be done all at once. Particularly for larger projects or limited budgets, it is worthwhile carrying out the work into meaningful stages. This keeps costs and effort manageable, and the building can continue to be used in part.

Recommended sequence of refurbishment steps

Remodelling stepGoal / BenefitNotes
1. inventory & planningDetermination of damage, energy requirements, staticsCommission an energy consultant or expert
2. roof & facadeProtection against moisture, energy savingAlways renovate the building envelope first
3. windows & doorsImproving thermal insulation and soundproofingReplacement only makes sense after façade insulation
4. heating modernisationEfficient heat supply, lower operating costsCheck combination with renewable energies
5. electrical & sanitary installationSafety, comfort, sustainable infrastructureFinalise before interior work
6. interior fittings & surfacesQuality of living and designPaintwork, floor, kitchen, bathroom
7. outdoor facilities & finishing touchesVisual enhancement, value retentionPaving, garden, terrace

Tip: Between stages, it should always be checked whether new funding can be applied for or additional measures can be combined.

Example: Refurbishment in three phases

Phase 1 - Secure substance:
Waterproofing the roof, renovating the façade, draining the cellar.

Phase 2 - Improve energy efficiency:
New windows, modernise the heating system, add insulation.

Phase 3 - Improving the quality of living:
Renovate interiors, modernise bathrooms, design floors and walls.

Step by step, an ageing building is transformed into a modern, energy-efficient home.

Renovating old buildings to increase value

A well thought out Renovation of old buildings is not only worthwhile from an energy and aesthetic point of view - it can also minimise the Significantly increase the market value of a property. Particularly in cities like Berlin, where flats in older buildings are in high demand, modernisation can make the difference between a property in need of refurbishment and a premium offer.

Example: Value enhancement through refurbishment

MeasureInvestment (€)Estimated increase in value (€)Remark
Façade & roof insulation45.000+60.000Energy saving, better energy performance certificate
Heating modernisation (heat pump)20.000+25.000Future-proof technology, lower ancillary costs
Window renovation & new electrics25.000+30.000More comfort, higher safety standards
Interior fittings & bathroom modernisation30.000+35.000Increasing the residential value
Total120.000 €≈ 150,000 € increase in valueapprox. 25 % Return potential

Of course, the actual increase in value depends on the location, the building fabric and market demand. In highly sought-after locations such as Berlin-Prenzlauer Berg, Charlottenburg or Friedrichshain the effect can be significantly higher.

Tip: Anyone who, after the refurbishment Sale takes into considerationshould have the regional market value and price level professionally checked - for example via

Conclusion: renovating old buildings as a sustainable investment in the future

One Renovation of old buildings is more than just a construction project - it is a long-term investment in the future. Value, comfort and energy efficiency. If you plan carefully, utilise funding opportunities and involve experts, you can not only reduce energy costs but also significantly increase the value of your property.

Especially in cities with growing demand such as Berlin The modernisation of old houses pays off in several ways: it preserves the historical character, increases the quality of living and ensures a solid return on the later sale.

Looking to the future: refurbishment is becoming smarter and more sustainable

The future of renovating old buildings lies in sustainable building materials and digital building technology:

  • Natural insulation materials such as wood fibre, hemp or cellulose are increasingly replacing conventional products.
  • Smart home systems optimise energy consumption and indoor climate in real time.
  • Recyclable building materials and modular refurbishment systems make modernisations more resource-efficient.

So if you renovate today, you create the basis for future-proof living space - energy-efficient, comfortable and of lasting value.

About the author

Picture of Fabian Blume
Fabian Blume
Fabian Blume is an experienced property agent (IHK) with over 10 years of expertise in the Berlin property market. He is characterised by his strategic, calm approach and knows the city and the procedures of successful sales processes inside out. Fabian attaches great importance to honest, sound advice and is committed to achieving the best possible sales price for owners.

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