Churches facing new challenges, plan further property sales
Changes in usage and new business concepts have led to many Protestant churches in Germany selling off property over the last five years, according to a new study published recently by the Evangelische Bank, a German bank linked to the country's Protestant Church.
As building maintenance becomes more untenable, an increasing number of church administrations are trying to repurpose their empty buildings or are putting them up for sale.
The study surveyed 145 building administrators in 126 church districts from 19 administrative divisions — both regional churches and dioceses, with 87% of the districts in the old western Germany. It found that 90% of participating administrations said they had sold property in the last five years. In addition, 69% said they plan on selling more buildings in the future. In eight out of ten regions, dioceses have had to be merged, and church buildings closed down.
87% of the districts surveyed were in the old West Germany, with one in three respondents coming from Bavaria or Baden-Württemberg. The survey was carried out between September and November 2017, and is broadly representative, with the twelve surveyed evangelical Landeskirchen representing about 10 million of Germany's 22 million Protestants.
"The numbers show that the church has started to deal with the question of real estate, but that it is still facing many challenges," said Christian Ferchland, a board member of the Evangelische Bank.
No longer cost-effective
The study said half of the regional associations for Protestant churches and one in every two Catholic dioceses has empty buildings. The study also showed that the running costs for maintaining these buildings were a strain on the church communities' budgets.
Germany's churches are facing a decline in membership, the consolidation of churches and canceled pastorships, a problem the Evangelische Bank said it expects to persist in the coming years. However, Ferchland said selling buildings that were used for church services is tricky.
"It's important to take the pros and cons or even the reputational damage that may occur when selling church real estate into consideration, Ferchland said.
Some churches have begun renting and leasing their empty space to interested parties, which the Evangelische Bank said makes real estate management and project development more important. By participating in housing projects for refugees and the socially disadvantaged, the churches may be able to secure stable rental incomes.
The Evangelische Bank operates as a co-operative, sustainable lending institution, with a balance sheet of €7.1bn, placing it in the top ten co-operative banks. It employs 480 staff from 13 separate branches, looking after 19,000 institutional and 72,000 private clients.