20% Margin Possible through Smart Vertical Expansion

Berlin is growing and urgently needs more housing!

But how can this demand be met without utilizing more land area?

The solution lies in the sustainable vertical extension of existing buildings.

This efficient method enables the creation of up to 410,000 square meters of living space.

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1. Sustainability

The vertical extension of residential units using timber frame construction is a significant contribution to sustainability.

Wood is a renewable resource that requires less energy and emits less CO2 during the production of timber modules compared to conventional concrete construction.

Furthermore, wood stores the carbon dioxide absorbed during its growth, making construction with wood modules particularly advantageous from a climate protection standpoint.

2. Efficiency

Constructing a new rooftop extension enhances energy efficiency, particularly in unrenovated existing buildings.

By largely avoiding composite materials and reusing materials, a high degree of circularity can be ensured.

3. Cost Advantage for Portfolio Holders

Despite increased construction costs, the expansion remains profitable for existing property owners due to the promising rental potential!

According to PriceHubble, the achievable net cold rents for apartments with additional floors in Berlin can range from €14.50/m² in suburban areas to up to €28.00/m² in the city center.

Furthermore, the City of Berlin can actively promote and financially support the construction of rental housing.

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4. Prevention of Soil Sealing                                                                

Adding storeys to existing buildings offers the opportunity to create additional inner-city living space without further land sealing.

This approach is relevant for achieving the 30-hectare target.

The objective states that land sealing in Germany must not exceed 30 hectares per year.

This contributes to environmental protection and the conservation of natural resources. Furthermore, it supports the preservation of green spaces and the promotion of urban recreational facilities.

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5. More Cost-Efficient

The vertical extension and densification of residential units will always be the most cost-effective option from an urban planning and cost perspective.

Modular timber construction methods offer financial advantages compared to conventional building practices. The short planning and construction periods, coupled with the use of prefabricated modules, accelerate and streamline the construction process, significantly easing budgetary pressures.

This allows for an additional increase in the IRR, which can be measured using the PROBIS calculate module.

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