Berlin's Senate plans to commission around 15,000 apartments in lightweight construction for the coming year, according to Senator for Urban Development Andreas Geisel. These units are expected to account for roughly half of the 30,000 new apartments planned for 2016.
The target rent is around 6.50 euros per square metre. Both private and publicly owned companies will build. The main driver is the influx of refugees, though the apartments will also be available to other people looking for housing.
Lightweight construction: fast, but contested
Proponents point to the speed of construction. Prefabricated and modular methods allow faster completion, which means rental income starts sooner. Construction costs are lower than those of conventional projects.
Critics raise fire safety concerns. Structures with a high proportion of wood offer a lower safety level than solid construction. Sound insulation and thermal performance are also under debate. In the long term, maintenance costs could be higher.
Possible locations
Specific sites have not yet been confirmed. The housing complexes are likely to be built primarily on larger publicly owned plots. Boroughs with available land are in focus, such as Lichtenberg or the outskirts of Treptow-Koepenick.
Owners of existing properties in these areas should watch the development: a concentration of affordable housing affects local rent trends and the social makeup of neighbourhoods.
15,000 lightweight units squeeze the lower-rent segment
15,000 new affordable apartments at a target rent of 6.50 euros per square metre would provide short-term relief in the lower segment. Private landlords of unrenovated older buildings or basic new builds will feel the added competition. At the same time, the programme underscores the high demand in Berlin, a factor that supports the investment climate overall.
