JLL - Residential Towers in Germany

The recent growth of all German cities
presents municipalities with ever greater
challenges. Alongside the creation
of supply and transport infrastructure,
the provision of housing is one
of the main tasks facing towns today.
The significant lack of housing is
made clear by the rapidly declining
vacancy figures. In almost all major
cities with more than 500,000 inhabitants,
there is now virtually no vacant
space in residential properties.
Against this background and the
resulting rising rents and purchase
prices, municipalities, developers and
investors are focussing their attention
ever more closely on the construction
of residential buildings.
The image of residential high-rises is
traditionally characterised by industrial
housing constructed in the 1960s to
1980s in districts featuring little social
mixing and integration. The experiences
of more recent decades - especially
in Asia and America - and the technological
changes in architecture and
building technology mean that today’s
towers are state-of-the-art.
They appeal to a variety of target
groups, from low to very high income
classes, aim to offer a high level of integration
into urban areas by means
of modern mobility systems and increase
the value of previously commercially-
used areas within cities,
without initiating crowding-out
processes.
On the basis of more than 20 European,
and over 60 German projects, in
the area of high-rise residential developments,
this report offers a comparative,
if not complete, overview of location
criteria, equipment features
and target groups in relation to users
and investors.
Introduction
Residential towers investment market 3