Techem study finds up to 90% of German apartment buildings can use heat pumps

Technical feasibility for low-temperature heating systems

An evaluation of heating consumption data across 1.1 million apartments in Germany demonstrates that multi-family buildings can accommodate low-temperature heating infrastructure. The findings, published in the Techem Atlas for Energy, Heat and Water 2026 by Eschborn-based building services provider Techem, assess the technical readiness of residential apartment blocks for heat pumps and low-temperature district heating networks. According to the dataset, approximately 40 percent of the multi-family building stock can already operate with low-temperature heating systems without requiring the replacement of existing radiators.

Modifying heating hardware inside individual flats allows an even larger portion of residential buildings to convert to low-temperature technology. Replacing standard radiators with modern units increases the suitability rate to approximately 80 percent across the country. Incorporating fan-assisted low-temperature radiators raises technical feasibility to roughly 90 percent of all multi-family housing. Only a tenth of the surveyed apartment buildings face substantial structural barriers before they can transition away from high-temperature fossil heating.

Only the remaining 10 percent require major modifications, such as switching to underfloor heating or surface heating systems as well as additional insulation.

Heating cost comparisons and long-term price stability

The research indicates that heat pump systems provided the lowest overall space heating expenses for tenants in multi-family buildings during 2025. Households living in buildings supplied by heat pumps paid an average of approximately 8.80 euros per square metre for space heating alone over the course of the year. Wood pellet heating systems represented the second most economical option in the evaluation, generating an average cost of 9.36 euros per square metre for residents.

Fossil-fuel heating systems and centralized district heating networks recorded substantially higher expenses per square metre during the same twelve-month period. Buildings relying on heating oil incurred an average cost of 12.97 euros per square metre, while natural gas systems averaged 13.92 euros per square metre. District heating recorded the highest average expenditure among all evaluated technologies at 16.02 euros per square metre. Techem noted that consumption costs for heat pumps have remained largely stable since 2021, whereas conventional fossil systems registered steep price rises. The report attributes this cost stability partly to the fact that electrically powered heat pumps within the examined portfolio are currently installed in well-insulated properties.

Among all heating systems examined, multi-family buildings supplied with heat pumps had the lowest heating costs per square meter in 2025.

Regional variations in heating expenses across German states

The study recorded notable regional disparities in residential heating expenditures across German federal states in 2025. Heating costs reached their highest state-level average in Saarland, where tenants in multi-family properties paid an average of 14.50 euros per square metre. Schleswig-Holstein followed as the second most expensive federal state with an average rate of 12.77 euros per square metre, closely followed by Hesse at 12.76 euros per square metre.

Heating is most expensive in Saarland at 14.50 euros per square meter, followed by Schleswig-Holstein (12.77 euros) and Hesse (12.76 euros).

At the opposite end of the national ranking, Berlin registered the lowest overall average heating expenditure in the country at 10.34 euros per square metre. North Rhine-Westphalia recorded an average of 10.69 euros per square metre, while Bremen followed closely with an average of 10.72 euros per square metre. The researchers observed that substantial price divergences were also evident between individual cities within the analyzed apartment portfolio.