Could your next apartment in Germany be in a former office building?

**Germany Looks to Vacant Office Buildings to Ease Housing Shortage**

*Berlin, 28 August 2026* – With a chronic shortage of rental housing and a growing pool of empty office space, German authorities at federal, state and municipal levels are promoting the conversion of commercial properties into apartments. The initiative is part of a broader effort to address an estimated deficit of 1.4 million homes nationwide.

### Federal “Commercial to Residential” Programme

In July, the federal government launched a €300 million “Commercial to Residential” programme that offers financial support for office‑to‑apartment conversions. Grants of up to €30 000 are available per newly created apartment, and investors may receive up to €300 000 provided the projects meet energy‑efficiency standards. Federal Minister for Housing, Urban Development and Construction Verena Hubertz said the scheme is intended to give “empty commercial properties a second chance while helping address the country’s chronic shortage of housing.”

### Scale of Vacant Office Space

According to recent data, more than 12 million square metres of office space are currently vacant across Germany. Vacancy rates in the country’s seven largest cities have reportedly tripled since the COVID‑19 pandemic, as remote and hybrid work arrangements reduced demand for traditional office premises. In Berlin alone, around two million square metres of office space are unused, while Munich is said to have over one million square metres of vacant office stock – roughly 10 % of the city’s total office inventory.

### Local Initiatives in Berlin and Munich

#### Berlin
The Green Party, which is preparing for state elections on 20 September, has proposed a package of measures to accelerate office‑to‑housing conversions. The proposal includes extending housing subsidies to conversion projects and establishing a dedicated renovation and repurposing agency tasked with identifying suitable buildings, linking owners with developers, and navigating regulatory hurdles.

One private developer, Communits, plans to install compact six‑square‑metre living units within underused office blocks, sharing kitchens, bathrooms and communal areas. A pilot “test living” project is slated to begin later this year in the Sarotti‑Höfe complex, with the company aiming to create 5 000 housing units by 2027, primarily for students and apprentices, and capping rents at €500 per month.

#### Munich
Munich’s municipal authorities have created an Office‑to‑Housing Conversion Agency, according to reports in the *Abendzeitung*. The agency is tasked with identifying appropriate office buildings, advising owners, and supporting the conversion process. City officials estimate that the conversion of vacant office space could yield approximately 10 000 new apartments. A recent example includes a former office building in western Munich that has been transformed into 33 apartments for homeless women.

### Expert Views on Feasibility

The Ifo Institute estimated in 2024 that up to 60 000 apartments could be generated by converting commercial properties in Germany’s seven largest cities. However, the institute cautioned that many projects may lack financial viability because office buildings often require extensive modifications to meet residential standards for fire safety, sound insulation, accessibility and structural integrity.

The property owners’ association Haus & Grund echoed these concerns, highlighting permitting requirements, renovation costs, and the need for new wiring, kitchens and bathrooms. The association also noted that many office sites are not situated near schools, parks, shops, childcare facilities or public transport, which could limit their suitability for family living.

Conversely, architect Rudolf Hierl told BR24 that many office buildings constructed since the 1980s possess solid structures and good insulation, making them amenable to conversion. Hierl emphasized that the success of such projects depends on selecting appropriate buildings.

### Outlook

While conversions of office space into residential units are being actively promoted, analysts agree that the approach is not a panacea for Germany’s housing crisis. The effectiveness of the programme will depend on the economic feasibility of individual projects, the suitability of locations, and the ability of authorities to streamline regulatory processes. The upcoming state elections in Berlin and ongoing municipal initiatives in Munich will provide early indicators of how the policy direction evolves.

Article and image source: thelocal.de