High-rises for Berlin: ZIA calls for more density in 2015

Germany's Central Real Estate Committee (ZIA) is calling for a shift in urban planning in Berlin: less sprawl, more building upward. That was the conclusion of a meeting between developers, architects, financiers and state-level politicians.

ZIA president Andreas Mattner put it plainly: "If you can no longer build outward, you have to build upward." Demand for housing keeps growing while building land remains limited.

Locations: City West and Alexanderplatz

There is consensus on the need for high-rises. There is no consensus on where to put them. City West and the area around Alexanderplatz in Mitte are under discussion. Other locations are being considered as well. Berlin has room for skyscrapers, the group agreed.

Senator Geisel: "Large numbers, fast and affordable"

The proposals are finding political support. Senator for Urban Development Andreas Geisel had already stated before taking office that Berlin needs "residential high-rises in various locations." His comparison with New York was telling: nobody finds New York appealing because it is flat and green. Geisel's argument is practical: only densification can manage the population influx and reduce pressure on rents.

What this means for owners and investors

For landowners in the areas under discussion, designation as a high-rise location could raise land values. For investors, there are opportunities in large-scale new development projects. Political backing is there. Whether the permitting process follows remains to be seen.

The debate also touches on the apartment market as a whole: more density means more supply on limited land. But Berlin also needs to work out how infrastructure and quality of life will function in denser neighbourhoods.