FEDERICA ZAMBELETTI / KOOZ I would like to start from the premise of HouseEurope! which states that today, buildings are treated as investments of wealth rather than spaces for people to live. Your proposal and ambition, therefore, is to pass a law that supports the adaptive reuse of existing building stock. To what extent can such an approach counter the financialisation of real estate?

HOUSEEUROPE! At HouseEurope! we believe that the renovation of existing buildings offers a powerful solution to counter the financialisation of real estate, which often prioritises profit over people and the planet. Instead of demolishing and rebuilding for speculative gain, renovation and transformation allow us to preserve homes and communities, ensure a fairer and more local building industry, save energy and resources, and preserve our memories and stories. By focusing on the value of what already exists, we can create spaces that serve people rather than being treated as mere commodities. To cite from our statement — available on our website:

Because existing buildings have lower upfront costs than new construction, they are a more feasible and cost-effective option for creating affordable living spaces. Renovation also brings vacant properties back into use, reducing speculation by limiting their potential to be held as collateral for financial gain. Our legal proposals aim to shift the building industry priorities away from a profit-driven focus, towards sustainable and community-centred development. Such a shift recognises the embedded carbon and resources in existing structures while reducing waste and emissions.

This approach not only preserves the social fabric of neighbourhoods but also aligns with the EU’s sustainability goals by promoting resource efficiency. Ultimately, renovation supports long-term community well-being, slows down the financialisation of real estate, and ensures that spaces are there for people, not profits.

KOOZ In the film The Demolition Drama, which you did with your chair at D-ARCH ETH, you mentioned that every building is up for demolition and I instantly pictured what the city would look like if this were true. In what ways is this vicious demolition — reconstruction practice both a social, economic, environmental, and cultural problem?

HE! The challenge with finite land is that to continue generating returns, the common practice is to demolish and rebuild. This approach drives up property prices, which leads to the displacement of long-term residents, and erodes the social fabric of communities.

The proliferation of demolition projects reflects a throwaway society with a value system that prioritises excessive consumption and waste over repair, reuse, and renovation. A system in which buying something new is cheaper than caring for the old, and financial profit is prioritised over the well-being of the people and the planet.

This may have worked in the past, when resources seemed in endless supply and new construction was cheaper, faster, and easier than working with existing buildings. But current material and energy shortages show us that this system no longer works. In response, the building sector has a pivotal role to play pursuing the necessary social, ecological and economic transformation: all the parties involved — from the real estate sector to architects to the construction industry — must recognise the risks of demolition and the potential of renovation.

KOOZ HouseEurope! aims to shift the narrative around the construction sector from one which is at the service of profit to one which is at the service of people. How does HouseEurope! seek to achieve this considering the economic weight of the building industry as one of the EU’s most profitable and vital markets? What is the social, environmental and economic potential of rerouting the construction industry in the practice of adaptive re-use?

HE! It is definitely one of the most profitable and vital markets within the EU, but it is also one of the most significant contributors to CO2 emissions and energy consumption. According to the European Commission, buildings are responsible for approximately 36% of CO2 emissions and 40% of total energy consumption in the EU, representing 35% of energy-related EU emissions in 2021. Moreover, the sector generates over 35% of the EU's total waste, highlighting its substantial environmental footprint.

Rerouting the construction industry would help preserve the social fabric of neighbourhoods by maintaining, as well as creating, affordable housing and community spaces, which are often replaced by expensive developments catering to wealthier demographics. This reduces the displacement and gentrification that often come with new construction, allowing long-term residents to remain and letting communities decide how to transform their spaces over time.

KOOZ Specifically, as a European Citizens’ Initiative, HouseEurope! advocates for EU-laws that make renovation more affordable, easy and social through the proposition of three core pillars. Could you run us through what these are and how you hope they could reshape the construction industry?

HE! Our proposed laws aim to incentivise renovation on a social, environmental, economic and cultural level. Our first legal proposal focuses on Tax Incentives for Renovation. Tax incentives are a crucial instrument to promote renovation markets across the EU. To make renovations financially more attractive than demolition and new construction, it is essential to expand the current scope of incentives. We propose to fully exempt sustainable renovation works of all existing buildings from VAT across the EU. This should cover the costs of labour and construction materials necessary to carry out renovations. We suggest building materials to only be exempt from VAT if they are produced from renewable raw materials¹ or if they are used construction products. This proposal aims to make renovation financially more attractive than demolition and new construction.

The second key measure is to establish Fair and Harmonised Assessment Standards for Renovation. Whether a building is renovated and transformed or demolished and rebuilt depends on an assessment aimed at determining its condition. The current standards lead to a distorted assessment because they focus solely on the presumed risks of existing buildings, but completely ignore their potential. At the same time, they do not address the important risks associated with the construction of new buildings, including in particular resource limitations, material shortages, and volatile supply chains. So, we are proposing mandatory Europe-wide standards to assess the condition and potential of existing buildings. These standards would ensure a consistent evaluation process across all member states, not discriminating renovation over demolition and new construction. By incorporating criteria such as environmental impact, resource scarcity, and life cycle emissions, we aim to boost investment in renovation projects, reducing the need for unnecessary new builds.

KOOZ Focusing on point III and the need to establish new values for the embedded co2 in existing structures, how does this proposal relate to the European Union's Green Homes Directive which is aiming to cut energy use and carbon emissions from building?

HE! This directive you mention requires that by 2050, the entire existing building stock within the EU must achieve zero-emission status.The goal of the EU member states to renovate our existing buildings by 2050 can be translated into tangible numbers: Currently, only 25% of the European building stock has been renovated, meaning that 75% of the work is still ahead of us. At the current annual renovation rate of 1%, it would take three times longer than we have to reach the agreed goals. Therefore, we face a reality: we need to triple the renovation rate to reach our goals. So we have come up with a simple yet specific roadmap: Preservation, Adaptation, Renovation, Transformation.

Preservation: Reuse, don't demolish!
We call for the preservation of existing buildings and the energy already invested in them. By doing so, we can save valuable resources and maintain social and cultural values. Our aim is to prioritise reuse over demolition, taking the first step towards achieving affordable living spaces for all.

Adaptation: Adapt, don't abandon!
We call for the adaptation of existing structures and underused spaces. In doing so, we can give Europe's building stock a new purpose and narrative, reframing the perception of value in what already exists. We aim to adapt buildings that have fallen out of use, thereby invigorating the potential of the existing building stock.

Renovation: Build for the future!
We call for the renovation, repair, and care of existing buildings. This reduces waste and CO2 emissions. Our aim is to renovate in a future-proof way, meaning we need to (re)build in a long-lasting way, limiting the unnecessary use of additional material and new construction now, and in the future.

Transformation: Shift the Value!
We call for the transformation of existing structures in a social, environmental, and economic sense. Our aim is to implement policies that ensure equity, resilience, and community-building. We need new cultural narratives: from viewing spaces as commodities to seeing them as necessities. Imagine you apply for a bank loan for renovation. Banks need to reinsure three times more for a renovation than for a new building. Interest rates go up and people are almost forced into building anew.

We are in a vicious cycle. So, how do we achieve a shift and make a change in reality? As citizens, we have the power to change this.

HouseEurope! calls for a Right to Reuse for existing buildings is currently open. If the initiative collects 1 million votes by January 31, 2025, the European Commission is committed to initiate the discussion at the highest political level and bring legislation that makes sustainable construction and renovation the new norm across Europe. You can vote online at this link.

Bios

HouseEurope! is a registered non-profit organization conceived as a policy lab dedicated to shaping legislation and hosting the European Citizens' Initiative (ECI). Our team and approach originates from the architecture practice bplus.xyz, focusing on how to use legislation to adapt and reuse existing buildings, and the chair for architecture and storytelling station.plus, focusing on how to use time-based media to design the advent of an idea into culture.

Federica Zambeletti is the founder and managing director of KoozArch. She is an architect, researcher and storyteller whose interests lie at the intersection between art, architecture and regenerative practices. In 2022 Federica founded KoozArch with the ambition of creating a space where to research, explore and discuss architecture beyond the limits of its built form. Prior to dedicating her full attention to KoozArch, Federica collaborated with the architecture studio and non-profit agency for change UNA/UNLESS working on numerous cultural projects and the research of "Antarctic Resolution". Federica is an Architectural Association School of Architecture in London alumni.