Major renovation

Comprehensive Renovation - A comprehensive renovation is the most extensive form of building renovation, in which an existing building is stripped down to its load-bearing structure and then completely rebuilt using modern technology and materials. The result largely matches a new building in terms of amenities and energy efficiency-while preserving the existing building structure.

What does a complete renovation entail?

During a complete renovation, all non-load-bearing components and the entire technical infrastructure of a building are replaced. The scope of work goes far beyond a standard modernization or renovation. Typically, a complete renovation includes the following trades:

Roof renovation involves replacing the roofing, insulation, and, if necessary, the roof structure. The facade is re-insulated, plastered, or clad to meet current energy standards. All windows and exterior doors are replaced with modern units featuring contemporary U-values. The entire heating system is replaced-in most cases with a GEG-compliant system such as a heat pump or a district heating connection. The entire electrical system is rewired to current standards, including sub-distribution panels, circuit breakers, and modern outlet planning. Likewise, the plumbing lines for water and wastewater are completely renewed, often including new bathroom and kitchen plumbing. Interior walls are moved or removed as needed, and screeds and floor structures are rebuilt.

The distinction from other forms of renovation is important: A renovation is limited to cosmetic improvements such as painting or new flooring. Modernization involves individual components, such as replacing the heating system or installing new windows. Core renovation, on the other hand, systematically addresses the entire building and brings it up to a uniform, current standard.

The costs for a core renovation range between 800 and 1,500 euros per square meter of living space, depending on the building’s condition, region, and standard of finish. For historic buildings or in cases of unforeseen damage to the building structure, costs may exceed this range. In the Nuremberg metropolitan region, costs currently tend to fall toward the upper end of this range, as demand for tradespeople is high and material prices have remained stable at elevated levels following increases in recent years.

Energy Efficiency and Tax Benefits

A complete renovation offers the opportunity to bring an existing building up to a modern energy efficiency standard. Depending on the scope of the work, a completely renovated building can achieve the KfW Efficiency House Standard 70 or even 55. This has a direct impact on the energy performance certificate and thus on the property’s market value-a decisive factor in a future sale.

From a tax perspective, owners can benefit significantly from a core renovation: Owner-occupiers can deduct 20 percent of the renovation costs from their tax liability over three years under Section 35c of the German Income Tax Act (EStG)-up to a maximum of 40,000 euros per property. Landlords can claim the renovation costs as maintenance expenses for tax purposes either immediately or spread over up to five years. For historic buildings, the even more favorable provisions of the Historic Preservation Depreciation under Section 7i of the German Income Tax Act (EStG) apply. Additionally, grants from KfW and the Federal Office for Economic Affairs and Export Control (BAFA) are available for specific energy-efficiency measures as part of the core renovation.

Practical Tip for Owners in Nuremberg and Franconia

The Nuremberg metropolitan region has a large stock of post-war buildings from the 1950s to the 1970s, which are often candidates for a complete renovation. Especially in neighborhoods such as Langwasser, Schweinau, Gibitzenhof, or Muggenhof, we regularly find properties where a complete renovation makes economic sense-provided the structural integrity is intact.

We recommend commissioning an independent building inspector to conduct a structural assessment before deciding to purchase a property in need of renovation. The cost for this ranges from 1,000 to 2,500 euros, but it can protect you from costly surprises during the renovation. A realistic cost estimate should always include a buffer of at least 15 to 20 percent for unforeseen expenses. When evaluating existing properties in the region, we factor in the renovation requirements in detail-because the purchase price of a property in need of renovation plus the costs of a complete renovation should be below the market value of a comparable, already renovated property.

Frequently Asked Questions

When is a complete renovation more worthwhile than demolition and new construction?

A complete renovation is worthwhile if the structural framework-that is, the foundation, basement walls, floor slabs, and load-bearing walls-is in good condition. As a rule of thumb: if the renovation costs are less than 75 percent of the cost of new construction, a complete renovation is generally more economical. Additionally, a renovation often eliminates the need for costly demolition permits and disposal fees. For buildings under historic preservation, demolition is out of the question anyway.

Can I continue living in the building during a complete renovation?

In most cases, it is not possible to live in the building during a complete renovation. Since the electrical, plumbing, and heating systems are completely replaced, the basic utility infrastructure is temporarily unavailable. The construction period for a complete renovation of a single-family home ranges from six to twelve months, depending on the scope of work. Owners should factor the cost of temporary housing into the overall budget-in Nuremberg, this currently amounts to approximately 800 to 1,200 euros per month for a furnished apartment.

What permits do I need for a complete renovation?

A complete renovation without changes to the building’s volume or use is generally not subject to approval in Bavaria. However, as soon as load-bearing walls are moved, dormers are added, the use is changed, or additional living space is created, a building permit from the City of Nuremberg’s Building Authority is required. For buildings under historic preservation, a separate permit under historic preservation law must also be obtained from the Lower Historic Preservation Authority.

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