Dusseldorf The list of wishes for the new dream property of customers in the luxury segment coincides with the promises for penthouses or maisonettes with roof terraces. Wooden floorboards more than ten meters long, floor-level shower trays with a wellness program are in demand, and the devices in the smart home, including the home cinema, should also be networked. Not to mention sufficient space, a quiet location in the middle of the pulsating life of the metropolis and a view over the city. Rarely in demand, on the other hand: best energy efficiency, resource-saving building materials and socially responsible use of land.
Investors, developers, builders and architects are required. Excessive exhaustion of all possibilities is no longer possible, even for apartments that are to be sold for at least 8,000 euros per square meter. At a time when people are demonstrating for affordable housing and the climate targets are forcing all companies in the real estate chain to check their CO2 balance and already have to take legal requirements into account, the construction is without any consideration of the criteria of “environment, social, governance” ( ESG) long history.
First of all, it is the consumption of living space per resident that gives a property in a prestige property a worse balance sheet. According to calculations by real estate consultants Vdp Research, per capita living space has increased from 36 to 47 square meters since 1995.
One of the last units in Frankfurt’s Grand Tower is currently for sale in the average range of 1.8 million euros: a two-room apartment on the 45th floor with 89.9 square meters. The ratio tilts at the latest two floors higher in the nine million euro penthouse with 300 square meters for four rooms and up to seven meters ceiling height.
Top jobs of the day
Find the best jobs now and
be notified by email.
“The extraordinary space requirements of luxury real estate is central to the consideration,” says Felix Jansen from the German Sustainable Building Council (DGNB), which among other things awards certificates for sustainable building. Nevertheless, this consideration alone is not enough to fundamentally classify luxury real estate as unsustainable. “With luxury real estate, as with all other types of buildings, builders can do a lot of things right when it comes to sustainability,” says Jansen.
Or have to do. The 173-page “Hafencity Ecolabel” brochure specifies the criteria that must be met for a building in Hafencity to be awarded one of the three environmental labels, ranging from bronze to platinum. Compliance with the highest level has been part of the area tenders since 2010.
Wood as a sustainable material
Martin Murphy is an architect at Störmer Murphy and Partners, who are not only aiming for the platinum eco-label with the “Roots” construction project, but also making it visible. 5,500 cubic meters of softwood will be processed for what will be the tallest wooden high-rise building in Germany after completion.
“There are still false assumptions about wood as a building material,” says Murphy. Especially in relation to fire safety and the behavior of a wooden pole should it catch fire. A layer of carbon forms, which protects the underlying wood and thus ensures the load-bearing capacity for a sufficiently long time. Murphy sees wood as a renewable raw material as a sustainable material for demanding residential construction.
Because just as important to the customers as the requirements of fire protection is the special room atmosphere, which is created by ceilings and walls made of solid wood on 18 floors.
For the “Social” part in ESG, Roots states that 128 condominiums will go into the normal market and 53 will be subsidised. However, projects of this kind would not yet be feasible without the client’s willingness to innovate. “The costs for the construction are around eight to twelve percent higher than in classic construction methods,” says the architect.
The Roots in Hamburg is set to become Germany’s tallest wooden skyscraper. It should be completed in 2024.
(Photo: Garbe Immobilien Projekte GmbH)
It is therefore not surprising that the industry not only recognizes the sustainability trend until relatively late, but also plans it. “Recent discussions with property developers confirm that buyers’ interest in the green credentials of their new homes began to grow about 12 months ago,” said Liam Bailey, head of research at real estate consultancy Knight Frank.
From existing properties in London’s Belgravia district to global new construction projects in emerging districts, developers of luxury apartments have an advantage when using energy-saving technologies and sustainably produced materials: “If they have the money, they can implement it.”
The industry plans, the customer pays
In addition to the political requirements, such as those applied in Hafencity, for example, the perspectives of a changing clientele are also leading to a change in the projects of luxury real estate developers, as Gregor Schattney, Group Head of ESG, at the real estate investment manager Corestate also knows capital. “Who is rich today, who is rich tomorrow? The coming generation will make different demands on their apartment or house,” says Schattney. It is all the more important for the industry, which has been planning for decades, to anticipate this development.
The customer of apartments with square meter prices of more than 8000 euros – with a few exceptions – is still more of a casual supporter. In addition to the location, classic factors such as tranquility, views and high-quality furnishings are still in demand, says Kai Enders, CEO DACH of the Engel & Völkers group of companies.
In one of the more recent projects in Hafencity, The Wave, the platinum award from the DGNB is listed with the addition “Apropos”. Nevertheless, it is possible, especially in the luxury segment, to achieve the higher prices for more sustainable construction. “The market is so tight that customers accept it because of the actual situation,” says Enders.
In one of the more recent new construction projects, sustainable equipment features such as charging stations for electric vehicles are often available, but are often not mentioned first in the project application. This is also the case with the construction project The Wave. The platinum award from the DGNB is only mentioned here in passing.
In the luxury segment in particular, it is possible to achieve higher prices for more sustainable construction. Buyers are willing to invest in appropriate equipment. But: “The supply of properties is very scarce, so that sustainability criteria are not yet decisive for many prospective buyers and customers are therefore willing to make compromises,” says Enders.
And architects, builders and brokers are also powerless against wasting space if the luxury property is just one of several owned by the owner and is only used for a few weeks or months a year.
More: From the home cinema to the fitness room: this is what defines the new luxury living space