Living Above Frankfurt's Clouds: Trend Over?

Living Above Frankfurt's Clouds: Trend Over?


Residential
05.05.2021 Author/s: Florian Wenner
Finding tenants for luxury flats like those in the Grand Tower is not a foregone conclusion. Here is a view of the lobby.
Finding tenants for luxury flats like those in the Grand Tower is not a foregone conclusion. Here is a view of the lobby.

What does this mean for future high-rise residential developments?

There are still numerous residential towers waiting in the wings, including landmark projects such as the FOUR high-rise ensemble. High-rise buildings with residential use are also planned for the last large inner-city development sites at police headquarters and the Millennium Areal. It remains to be seen, however, whether Frankfurt's high-rise residential market will be able to regain the momentum of the pre-Corona era after the end of the pandemic. In any case, the project pipeline is well filled and a shortage of supply is not to be expected, at least in the luxury residential segment. When the city designates further high-rise residential sites, the suitability of each location should be considered even more intensively in the future, especially since residential towers have been politically controversial for a long time anyway.  

It remains to be said that high-rise residential buildings will continue to shape the Frankfurt housing market in the coming years, even if the first signs of oversaturation are noticeable. It is therefore to be expected that the revenue and return expectations of project developers and private and institutional investors will have to be corrected downwards for some projects. This makes it all the more important to take a close look at the micro-location of future projects and to develop a product concept that is suitable for the target group and has unique selling points.

 

Contact person: Florian Wenner, Head of Residential Studies at bulwiengesa, wenner [at] bulwiengesa.de