German urban housing estates need €90bn investment - study

German housing estates, an important pillar of urban residential supply, are suffering an enormous investment backlog, and will need some €90bn for modernisation through 2030, according to a new and comprehensive study published by the German Institute of Urban Affairs (Difu) in Berlin.

Large estates with over 500 rental units make up some 10% of total housing stock or 4m apartments, and are home to 8 million people throughout the country, Difu found in its new study. It places the investment backlog in modernisation and new construction at €56bn through 2030, plus an additional €33bn for social and technical infrastructure in the surrounding areas. The main challenges are the conversion of space to become barrier-free and elderly-friendly as the population ages, and to find cost-efficient solutions for energy-friendly refurbishment.

Housing estates form an important pillar of urban social infrastructure as they offer affordable living space, Difu said. To counter the poor reputation of some neighbourhoods, these modernisation plans need to provide attractive everyday living spaces, mixed-use functions and a better integration into the cityscape.

Against the backdrop of a general housing shortage in the large conurbations, more municipal, investor and planning attention should be given to the role played by these estates. The study was commissioned by the German Building and Construction Industry Association HDB, the German Building Materials Association BBS, the German Federal Association for Housing and Real Estate Companies GdW and the Housing Estate Centre of Excellency (Kompetenzzentrum Großsiedlungen).