Munich in construction fever: 1,500 new apartments in the cherry orchards!

Munich in construction fever: 1,500 new apartments in the cherry orchards!

The construction industry in Germany is optimistic despite challenging conditions. Economists are forecasting growth in the coming months, even if factors such as tariffs, wars and job cuts threaten to weigh on the economy. Companies in the industry are pinning their hopes on falling electricity prices and billions in state aid. This positive climate is also underpinned by concrete construction projects in Munich.

A significant construction project is currently taking place in Munich's northwest. The architect Maximilian Maier is working on a project in the “cherry orchards”, where an unsightly commercial park on a twelve-hectare site is to be demolished. The plan is to build 1,500 apartments, a park, daycare centers and a primary school. Maier and his team played a key role in the design planning of the private construction project. Before construction can begin, however, old warehouses and office buildings must be demolished.

Challenges of the housing industry

In the context of the upcoming federal election in 2025, the housing industry faces explosive challenges. Issues such as a lack of housing, rising construction and renovation costs and the goal of a climate-neutral building structure are coming into focus. According to that GdW Federal Association of German Housing and Real Estate Companies A policy shift is needed to pursue integrative approaches that combine economic, environmental and social needs.

The GdW recently published comprehensive reports based on its own basic data and official statistics. These reports contain a 120-page compilation of key figures, tables and graphics on the industry and the housing markets. Some key topics are the results of the 2022 census on the housing situation in Germany, the decline in investments by GdW companies for the second year in a row and the social housing industry under pressure.

Market analysis and trends

Insights into the current market situation are provided by the average rent for GdW companies, which is 6.39 euros per square meter. Despite the challenges, the population forecast is increasing by 2045, while regional disparities are increasing. These developments highlight the need to strengthen social housing and increase the number of subsidized rental apartments.

GdW member companies receive free copies of the reports, while interested buyers can purchase paid copies for 35 euros from Haufe-Lexware GmbH & Co. KG. This comprehensive analysis represents an important contribution to the discussion about the future of the housing industry and the challenges ahead.

While the construction industry in Munich is sending glimmers of hope through concrete projects such as the “Cherry Orchards,” the entire industry remains challenged to develop innovative and sustainable solutions to meet current and future requirements.