The German Housing Market: Situation and Potential

Structure of the German housing market

The German housing market is the largest national market in Europe with more than 38 million appartments in nearly 17 million buildings. About 54% of the dwellings are located in multifamily houses (MFH).

Unlike in many other European countries about 60% (or 21 million) of the total stock are rental dwellings and about 30% are owned by professional housing companies.

This specific ownership structure with professional companies managing a large share of buildings is a potentially good starting point for installation of solar collective systems avoiding usually tremendous problems in case of condominium buildings with complex decision making procedures. Gathering acceptance of all owners is a very difficult task.

Based on the average annual refurbishment and construction activities in the MFH sector (480.000 dwellings refurbished, 150.000 dwellings constructed annually) and assuming a share of 50% of buildings that are technically feasible for an implementation of solar collective systems, there is a resulting market potential of about 500.000 m2 annually installed collector area.

Given these very general figures it should be considered, that the housing market is heterogenuous — with a lack of available flats in some areas and prospering cities and up to 15 or even 20% unoccupied dwellings mainly in the eastern parts of Germany — thus housing companies facing completely different economic situations and needs.