Renovation and construction of fresh structures
Revamped Perspective:
Let's talk about the current predicament surrounding large apartments, particularly those with seven rooms or more, in the state capital. According to Uwe Orlob, chairman of IG BAU Düsseldorf, owning such a massive abode means evading the specter of escalating rents. He urges the real estate industry to steer clear of exacerbating the rent spiral and boosting inflation by keeping rent hikes in check.
Orlob emphasizes that the financial strain caused by the cost surge in heating bills must not be compounded with unwarranted rent burdens. He's advocating for a clear message to the housing market: no more squeezing the lemon harder!
Moreover, Orlob draws attention to the need for preventing a slowdown in residential construction, given the obstacles in new construction, like material shortages, rising prices, and increased construction interest rates. As per Orlob, what we need right now is some good old-fashioned flexibility. With housing associations under the spotlight, they're being urged to reconsider their building projects, especially if new construction seems impractical.
Converting existing, non-residential buildings into apartments may offer an enticing solution, given the reduced materials required compared to building from scratch. An excellent example would be converting once-thriving offices now abandoned due to the work-from-home revolution, resulting in numerous potential new apartment opportunities.
In addition, Orlob sees untapped potential in adding additional floors to residential buildings constructed between the end of the war and the turn of the century. A "rooftop addition and conversion crusade" could lead to the creation of countless new apartments through top-floor expansions.
When it comes to addressing housing affordability as a whole, it's an elaborate process that requires a combination of strategies. Supporting vulnerable tenants, preserving existing affordable units, increasing housing supply, mobilizing private capital, fostering community engagement, and addressing the challenges in residential construction are among the key strategies. Underutilized non-residential buildings for residential conversion contribute significantly to these efforts, making them an essential component of the overall strategy to tackle the modern-day housing affordability crisis.
Financing the conversion of underutilized non-residential buildings into apartments and implementing a "rooftop addition and conversion crusade" could be promising strategies for the real estate industry, helping to boost housing supply and thus alleviate the current housing-market predicament. Moreover, long-term investing in the real-estate sector, including residential building projects, should prioritize affordability and avoid fueling inflation in the housing market, following Orlob's call to preserve financial stability for potential homeowners and tenants.
