Innovative impetus for the municipalities of the future – announcing the winners of the KfW Award Urban Living 2025

• First prizes go to Potsdam (Brandenburg), Bendorf (Rhineland Palatinate), Denzlingen (Baden-Württemberg) and Darmstadt/Dieburg (Hessen)
• Prizes were awarded to 12 recipients in the four categories “Digital education”, “Energy and heating transition”, “Affordable and space-efficient housing” and “Living inclusion – Disabled sports unites municipalities”
• Award ceremony took place in Berlin on 2 June 2025
• Total of EUR 40,000 in prize money

Climate change, digitalisation and demographic change present huge challenges for our cities and municipalities. In order to remain future-proof, they need innovative concepts and bold solutions. Germany has already made good progress in this area. In order to showcase sustainable and pioneering projects in municipalities across the country, KfW Group has initiated the KfW Award Urban Living.

The winning projects are intended to inspire the municipalities of tomorrow and motivate others to follow suit. Successful examples received awards in the categories “Energy and heating transition”, “Digital education” and “Affordable and space-efficient housing”. In addition, there is a special category “Living inclusion – Disabled sports unites municipalities”, which was jointly advertised with the German National Paralympic Committee (DBS).

A jury composed of 16 experts selected 12 winning projects from among the submitted applications, for which prize money totalling EUR 40,000 was awarded.

Category: “Affordable and space-efficient housing”

• First prize: Potsdam, project: ProPotsdam - living space sufficiency/ living space bonus (prize money of EUR 5,000)
• Second prize: Backnang, project: WiQ - living in the district (prize money of EUR 3,000)
• Third prize: Freiburg, project: Rehabilitation of the heritage-listed Knopfhäusle settlement (prize money of EUR 2,000)

Category: “Digital education”

• First prize: Bendorf, project: MakerSpace, providing free research time in its locations (prize money of EUR 5,000)
• Second prize: Mönchengladbach, project: MINT in Mind – promoting STEM education (prize money of EUR 3,000)
• Third prize: Nuremberg, Digi iQ – basic digital education in the district (prize money of EUR 2,000)

Category: “Energy and heating transition”

• First prize: Denzlingen, project: Campus Denzlingen- local heating network (prize money of EUR 5,000)
• Second prize: Potsdam, project: Heinrich-Mann-Allee - social housing construction and deep geothermal energy (prize money of EUR 3,000)
• Third prize: Bakum, energy sharing with municipal buildings (prize money of EUR 2,000)

Special category: “Living inclusion – Disabled sports unites municipalities”

• First prize: Darmstadt/Dieburg, ViiAS - diverse, innovative sport offerings (prize money of EUR 5,000)
• Second prize: Aachen: “Standing strong together for Aachen” – inclusion in sports (prize money of EUR 3,000)
• Third prize: Rostock, project: inclusive sport under the aspect of social participation (prize money of EUR 2,000)

KfW’s CEO Stefan Wintels:

“Most of our country’s modernisation takes place at municipal level. Our municipalities face the challenges of climate change, digitalisation and demographic change. But we can shape the future with innovative concepts and bold solutions. The KfW Award Urban Living gives recognition to outstanding projects that are future-oriented and inspire others to replicate them. We can drive forward the necessary changes and sustainably modernise our society together through cooperation and citizen participation."

The awards ceremony was held at the German Municipal Congress in Berlin on 2 June 2025. The award recipients were introduced and honoured by Stefan Wintels of KfW and Dr Uwe Brandl, president of the German Association of Towns and Municipalities, in the presence of almost 800 representatives of cities and municipalities. The news channel n-tv will report on the event in a special TV broadcast at 6:35 PM on 9 June 2025.

Further information is available at www.kfw.de/leben (German only)

Category: “Affordable and space-efficient housing”

First prize: Potsdam, Brandenburg, project: living space sufficiency/ living space bonus by ProPotsdam

The municipal housing company ProPotsdam offers a living space bonus to promote smart housing management over new construction. Renters who voluntarily move from an oversized unit into a smaller one receive financial support: a contribution of up to EUR 3,000 to the relocation costs and a rent reduction for the first twelve months. This allows children’s rooms to be inhabited by children again and makes larger units available to families who urgently need more space. Since its introduction in the year 2011, ProPotsdam has already organised more than 260 relocations. The approach saves not only rental costs but CO₂ and energy, too, as more people residing in existing living space means lower per-capita energy consumption and emissions.

Second prize: WiQ - Living in the District, from Backnang, Baden-Württemberg

On the site of the former Backnang hospital, a car-free district was built with 26 units in different sizes, including cluster units with compact private spaces and generously shared kitchens and living rooms that save space and reduce housing costs. The project “Living in the District” was initiated by an engaged group of citizens who took the planning, design and organisation into their own hands. Their guiding principle: to live as a community with space for individual ways of living. The local authority supported the project by cooperating in the allocation of the land and the town planning office and building law office helped by supporting the project as partners

The project benefitted from the local authorities’ support in terms of property allocation, city planning and building permissions and was realised as a KfW Efficiency House 40.

Third prize: Rehabilitation of the heritage-listed Knopfhäusle settlement in Freiburg im Breisgau, Baden-Württemberg

The 19th-century Knopfhäusle settlement is a testament to social housing construction. The municipal housing company Freiburger Stadtbau (FSB) has extensively modernised the heritage-listed workers’ settlement with energy-efficient refurbishment, new bathrooms and heating without distorting the historic character. A three-stage rental model with rents locked in for 15 years ensures long-term rental affordability. A modernisation advisory council and well thought-out relocation management ensured transparency and social sustainability during the modernisation. The project combines heritage protection, social responsibility and sustainable urban development while creating affordable, modern living space in historic buildings.

Category: “Digital education”

First place: Bendorf, Rhineland Palatinate: free research time in the MakerSpace

In the MakerSpace Bendorf, children, youths and adults can try out digital technologies by programming software, playing with robots and printing 3-D objects. In around 100 weekly courses during the summer recess, some 1,400 participants can implement their own ideas, try out technologies and train important skills such as teamwork and problem solving. The open offer of the public-benefit educational institution MakerSpace Mayen-Koblenz is available to all with no need for prior knowledge or technical equipment at home. Its goal is to motivate young people for STEM subjects at an early stage, open up new perspectives in the digital world for adults, and build bridges between school, work and society.

Second place: Mönchengladbach, North Rhine Westphalia: MINT in Mind

The aim of the project “MINT in Mind” is to get children and youths from Mönchengladbach and Krefeld who are at a structural disadvantage, in particular, to develop an interest in STEM subjects (science, technology, engineering and mathematics – MINT in German) with a focus on digital education. Participation in social life and the future world of work goes hand in hand with digital technologies and skills. With this in mind, the project developed a range of digital offerings such as robotics workshops, programming courses and IT security courses. It also created an interactive online platform in order to strengthen the digital skills of children and youths.

Third prize: Nuremberg, Bavaria, Digi iQ – basic digital education in the district

“Digi iQ” has been bringing digital education to Nuremberg districts with a high share of migrants since 2024. Youths and adults with a migration background are being trained to become digital coaches in order to share basic digital skills as equals on a volunteer basis. They convey important digital topics – from Internet access through data protection to cyber mobbing – in simple language. The project incorporates a new Nuremberg district every three years in cooperation with the respective local community centre. The digital coaches then go to community centres, youth centres, family education centres and clubs where they provide support on digital issues. The aim is to give people with little access to education or technology a simple and practical point of entry to the digital world.

Category: “Energy and heating transition”

First prize: Denzlingen, Baden-Württemberg: local heating network Campus Denzlingen

The municipality of Denzlingen wants to become climate-neutral by 2035. The planned local heating network which uses energy from groundwater and air-source heat pumps is an important step in this endeavour. Three wells have already been drilled, and the heat pumps are being supplied with electricity from own photovoltaic systems. The planned local heating system is designed to cool buildings in the summer and cover more than 13,000 m² of heated area, including the school campus and the cultural and community centre. In order to realise the project, the local council decided to establish a municipal heating company in 2024. This project showcases how an innovative solution for the heating transition can be put into practice in cooperation with a local energy cooperative in which citizens can also participate.

Second prize: Potsdam, Brandenburg: social housing construction and deep geothermal energy

A new housing district has been under construction at Heinrich-Mann-Allee in Potsdam with an unusual energy strategy since 2017. Using deep geothermal energy and energy-efficient construction methods, it aims to reduce CO₂ emissions, keeping energy costs and rents affordable in the long term. In addition to technical implementation, the focus is on the housing mix, which targets families, older residents and smaller households. The project is being implemented jointly by ProPotsdam GmbH and the state capital, combining climate action with social responsibility.

Third prize: Bakum, Lower Saxony: energy sharing with municipal buildings

The municipality of Bakum has adopted a joint electricity strategy for its municipal buildings. Photovoltaic systems installed on the roofs of the sports arena, the secondary school and, in future, the town hall, generate electricity jointly tapped from a central connector and battery. Surplus energy is stored and consumed locally with the aim of reducing CO₂ emissions and dependence on external electricity purchases. The system also supplies electric vehicle chargers at the town hall. The project harnesses the proximity of the buildings and illustrates how small municipalities are able to lower energy costs and future-proof their infrastructure.

Special category: “Living inclusion – Disabled sports unites municipalities”

First prize: The sport group Darmstadt-Dieburg connects the municipalities of the district of Darmstadt-Dieburg and of the research city of Darmstadt, Hessen, Project ViiAS – diverse, innovative and inclusive sport offers

The ViiAS project has been promoting inclusion in sports since 2020 by supporting clubs in making offers more inclusive and dismantling barriers at sport facilities. An online search for clubs, action days and personal advice by the project team make the offers visible and create a model for lived inclusion in municipal sports. So far, more than 100 sports centres in the model region have been checked for barriers, and the number of inclusive sport offers in the model region has tripled. Offers are announced through networking, making them easier to access for people with disabilities.

Second prize: Aachen, North Rhine-Westphalia, inclusion in sports: “Standing strong together for Aachen”

The aim of the research project was to adapt club sports to the needs of people with impairments. It created a guide with recommendations for action for sports clubs. People with different impairments were actively involved in the project. All impairments, including visual, hearing, mobility and cognitive impairments, were included. The project created a network of workshops, schools, child daycare centres, residential homes and leisure facilities that work closely together.

Third prize: Rostock, Mecklenburg- Western Pomerania: inclusive sports under the aspect of social participation in the Hanseatic and university city of Rostock

The municipality of Rostock and the Office of Social Affairs and Participation have set themselves the goal of developing Rostock further as an inclusive sports city. Together with the state of Mecklenburg-Western Pomerania, they have launched a project that uses sports for social participation. It centres on new inclusive offers such as sailing and para-athletics. A strong network composed of administrative offices, clubs and integration assistance organisations supports the dismantling of barriers and promote participation in everyday life.