Not for mimosas

Building design

Eike Becker

Eike Becker was at the MIPIM in Cannes for us, the world’s most important trade fair for commercial real estate. It is an important barometer for the mood on the real estate markets.

The atmosphere on the plane is upbeat, like on a school trip. Most of us have known each other from these trips for years. After landing, the driver takes us to Cannes. Past palm trees and sailing boats, the warm afternoon sun reflects off the glittering waves of the Mediterranean. A small dark dot can be seen on the horizon. A helicopter flight directly from Nice Airport to Mipim in Cannes. Flight time: 7 minutes, €510 for three people.

The hotel is centrally located, rocked up, plush curtains in the tiny, dusky pink room simulate high class. The bathroom smells of mold. Until a few years ago, I used to rent vacation apartments. The apartments got more expensive and poorer from year to year, until I fell for a scammer and ended up on the street despite having paid a deposit. Not an isolated case. Cannes is not a place for mimosas or soft-spoken summer vacationers. Here, people take decisive action. No one worries about guests staying away.

The German pavilion is packed at the opening. Reiner Nagel, Chairman of the Federal Foundation of Baukultur, speaks eloquently and proudly about the Baukultur Report 2014/15 – and rightly so. The German ambassador is represented. Jürgen Meyer H, Sauerbruch Hutton, Michael Schumacher, Rainer Schmidt, Lava, Jan Kleihues, Auer and Weber, Eller and Eller are also on board. It’s off on a big trip: 22,000 visitors and 5500 companies from over 90 countries are offering themselves as potential business partners. That should be enough for everyone. An architect doesn’t even need 50 clients in his life.

Several appointments later, I shower off the sweaty day at the hotel and talk to my family on the phone. Everyone thinks I’m on vacation.

Then I take the bus from the harbor to a restaurant on the beach. The hosts are charming and delight their guests with an extremely short speech. The expansion abroad seems to have been a success. There is already a table with new customers from England, France, Italy and Spain. My neighbor at the table impresses with his own theory of evolution: the line of development in the real estate industry goes like this: Architect, broker, project developer and the investor as the crown of creation. In response to my comment that everyone has to work together intensively in order to be successful, he replies: “I don’t need a couch or a therapist here!” Like me, his colleague is amazed at his self-confidence.

Yes, the industry is not lacking in confidence in these boom times. Some people are reminded of 2007, when boundless euphoria was followed by a crash. Experience advises caution, but no one can give concrete arguments for an imminent turnaround.

My hotel room is still painted dusky pink. When my neighbors come home, I’m afraid they’ll unlock my door and stand right in front of my bed. No soundproofing standards far and wide.

The next day I have 15 appointments and a round of talks. I’ll be hoarse tomorrow.

Thursday is German Hour at the German stand. Dr. Elisabeth Merck, city planning officer in Munich, talks about her battle with the charming men in the dark suits who usually pay a lot for the plots of land, want more building rights very quickly, but even before the building permit is granted, new men in dark suits are sitting in front of her who have paid even more for the same plot of land and want even more building rights.

I don’t like this miraculous way of increasing money either. With every intermediate deal, there is less left for the architecture.

After dinner, we go on a boat with a saxophone player. There I find out that the client with whom I signed the architectural contract for the competition we won the day before the Mipim has as good as sold the plot with our plans still to be drawn up. The buyer is already negotiating with a new buyer for the completed building.

This Hans im Glück story or the biotonic drink is already making my head spin. When the music on the neighboring boat begins to drown out the saxophone player, I leave the swaying ship.

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Affordable housing alliance launched

Building design
Goals of the Ampel coalition: 400,000 new apartments per year, 100,000 of which are publicly subsidized. (Photo: Di on Unsplash)

Goals of the Ampel coalition: 400,000 new apartments per year, 100,000 of which are publicly subsidized. (Photo: Di on Unsplash)

The Alliance for Affordable Housing, with around 50 participants, met for the 1st Alliance Summit on April 27, 2022.

“A new departure in building, housing and urban development policy” is the motto of the coalition agreement between the traffic light parties. The words are now to be followed by action. An affordable housing alliance with around 50 participants met for the first alliance summit on April 27, 2022.

In a fair society, everyone should be able to afford a home. However, this is far from being the case everywhere in Germany. One thing is certain: more affordable and climate-friendly housing is needed. The coalition government has set itself ambitious targets to achieve this: 400,000 new homes are to be built every year. Of these, 100,000 apartments are to be publicly subsidized.

This intention is set out in the coalition agreement. The “Alliance for Affordable Housing”, which is based at the new Federal Ministry of Housing, Urban Development and Building (BMWSB), was set up to implement the ambitious targets. Together with the alliance, the ministry states that it wants to “initiate a construction, investment and innovation offensive in Germany”.

The Alliance for Affordable Housing began its workon April 27, 2022. It consists of 35 permanent members, including representatives of the federal states, municipal umbrella organizations, housing and construction industry associations and civil society organizations. Specialist guests are also regularly invited to provide advice. Support from the Bundestag is provided by twelve permanent, advisory guests from the parliamentary groups of the governing coalition.

The kick-off meeting took place at the EUREF Campus in Berlin-Schöneberg. High-ranking representatives of all governing parties, the federal states of Baden-Württemberg, North Rhine-Westphalia, Hamburg and Hesse, municipal umbrella organizations, industry and business associations as well as civil society and churches took part.

Affordable Housing Alliance: kick-off event in April 2022

The first Alliance summit was convened by Federal Building Minister Klara Geywitz (SPD) and consisted of the minister and top representatives of the associations. Prior to this, there were Alliance working rounds with the various Alliance members. They worked out the goals and content, the working structures and the timetable for the alliance process.

There was also a lot of criticism. For example, the umbrella organization of the German housing industry described the government’s housing targets as “illusory”. According to GdW President Axel Gedaschko, material bottlenecks, exploding energy costs, supply chain problems, rising interest rates and the uncertainty surrounding new construction subsidies from 2023 are combining to prevent the construction of affordable housing.

Minister Geywitz told dpa ahead of the meeting: “It’s about getting through a big hole: we have a huge need for housing in Germany, especially affordable housing. […] We also need the support of the construction industry, which needs to significantly expand its capacities but is under pressure due to rising construction costs and material shortages.”

According to Geywitz, almost 800,000 apartments in Germany have currently been approved but not yet built. Obstacles to planning are one reason for the slow progress.

Densification as a strategy

A draft of the final declaration of the Alliance for Affordable Housing shows that new housing is to be created primarily in conurbations. In this context, densification of existing housing plays a much greater role than new buildings or new construction areas.Filling gaps between buildings, adding storeys to houses and converting commercial buildings into apartments offer opportunities to densify German cities in an efficient and climate-friendly way.

However, according to the German Construction Industry Association, the ambitious targets do not match reality. The war in Ukraine and the ongoing consequences of the coronavirus pandemic are causing material shortages, price increases and significantly higher energy prices. As a result, certain projects have to be prioritized.

There is also criticism from politicians: Jan-Marco Luczak, the CDU/CSU housing expert, criticized the lack of solutions proposed by the alliance and noted that valuable time could be lost through theoretical debates.

Caren Lay from the left-wing parliamentary group, on the other hand, criticized the fact that many expensive luxury and owner-occupied apartments would be built, which would not be able to solve the problem of affordable housing. Instead, she suggested that only social housing should be built in inner cities with a tight housing market from now on.

A new entrepreneurial spirit?

The leading association of the real estate industry, the German Property Federation (ZIA), called for a new entrepreneurial spirit at the kick-off meeting of the Alliance for Affordable Housing. According to President Dr. Andreas Mattner, this should serve as a response to the accumulation of the pandemic, Ukraine and climate crisis.

“Construction costs have exploded to an unprecedented extent, construction companies are barely able to keep to their contracts, interest rates are skyrocketing, subsidies are being cut and efficiency requirements are set to increase. And all of this with a need not just for 400,000 new apartments per year, but – due to the admission of hundreds of thousands of refugees – for 500,000 to 600,000 apartments. It is no longer possible without bold cuts: We need a regulatory freeze and the suspension of time-consuming approval procedures. The commendably swift extension for refugee buildings is a very good first step. Next, we need a banking summit to find measures to counter the rise in interest rates and a materials and supply chain summit. The real estate industry must be able to participate in these crucial decisions,” says Mattner.

“Furthermore, we need a degressive depreciation as well as serial and modular construction that is not only talked about, but also implemented across the board. The challenges seem almost impossible to solve – but crises also present an opportunity for change and we all have a duty to push for this,” he added.

A house for contemporary art

Building design

Almost 50 years ago, the then still very young publisher Gerhard Steidl had the idea of building an exhibition house for contemporary art in Göttingen, the city of his birth. Now the Kunsthaus Göttingen is being realized Gerhard Steidl creates book art at the highest level. His aim – whether fashion, art or literature – is to bring the ideas of artists […]