Potsdam is planning 15,000 new apartments – will the rent remain affordable?

Potsdam is planning 15,000 new apartments – will the rent remain affordable?

There are signs of a massive housing construction initiative in Potsdam that could create up to 15,000 new apartments by 2040. The city administration and the building authority are intensifying their efforts to meet the increasing need for housing, while the population is expected to grow from the current 188,000 to around 200,000 people, according to BBSR forecasts. Even with ambitious new construction projects, there remains an unmet need of 4,800 apartments, which presents decision-makers with new challenges that they must overcome in order to keep domestic rents stable. In particular, a decline in the number of large households shows a trend that impacts the type of housing required. By 2040, over 80% of households are expected to be one- and two-person households, which will further fuel demand for microapartments (apartments up to 30 square meters). According to maz-online.de, the concept of tiny apartments is therefore also identified as a central form of housing.

The priorities for future housing construction are clear: 4,800 new apartments are to be built in Krampnitz, while around 1,000 new units are planned in the long term in Kirchsteigfeld. A further 950 apartments are planned in the Stern Center in Drewitz and around 750 apartments in the area around the main train station. Additional offers through densification and additions must also be taken into account, while in Golm the master plan includes 1,700 apartments, which are currently on hold due to environmental concerns. Although 5,500 apartments already have building rights and 2,500 are under construction, around half of the potential, estimated at 7,725 apartments, remains without a legal basis.

Politics and tenant protection in view

The city administration is not only confronted with housing construction, but also with the need to strengthen tenant protection. Potsdam city politicians are planning to take concrete measures against furnished apartments. A corresponding resolution, which calls for the examination of the construction of new small, furnished and temporarily rented apartments, found a broad majority in the building committee with the support of the SPD. The idea of ​​preventing microapartments in environmental protection areas could soon become a reality, especially in areas affected by luxury renovations, reports the Tagesspiegel.

There is also a high risk that rental prices in the city will generally rise, which could particularly burden tenants in these areas. It remains to be seen what measures the city administration will present in the summer to meet these challenges. The topic of environmental protection is becoming increasingly important as the city council also wants to declare the Brandenburg suburb to be Potsdam's third environmental protection area.

Market movements and construction challenges

As the current housing market shows, nationwide developments are also important for the Potsdam situation. The war in Ukraine has driven up construction prices and interest rates, making it even more difficult to build new housing. However, the falling building interest rates since the end of 2023 have sent a positive signal, while an increase in prices for new buildings in 2023 contributed significantly to the revival of the market. As the BMWSB reports, there are also increasing mortgage deals, which are interpreted as a sign of the market recovery.

Overall, the housing shortage in Potsdam remains a highly topical issue that needs to be monitored further. While the city is trying to provide incentives to create new housing, the tenant protection mentioned is more important than ever to ensure fair and affordable housing conditions.