ZIA Spring Report: Conversion as the Key to Vibrant Inner Cities

The spring report of the real estate experts presented today underlines the far-reaching structural change in the real estate markets – especially in the city centres. Declining new construction activity, changed working models and a growing need for mixed uses make it clear that the future of the city will be decided in the existing stock.

"The analysis of the real estate experts shows that city centres deserve new answers," says Marcel Wnendt, CEO of Bayerische Hausbau Real Estate (BHRE). "There is a demand for buildings that can be used flexibly – from working in smaller, adaptable units to services, health and leisure facilities and gastronomy. If we want to reuse vacant office space quickly, approval procedures must become simpler, more reliable and faster - and more closely oriented towards the real possibilities of the portfolio."

Concrete projects of the BHRE already show that such concepts work: With the settlement of a fitness provider in a central city center location, a former retail space could be revitalized and supplemented by a high-frequency, everyday offer. Such uses help to keep city centres attractive even beyond classic trading hours. "The real estate industry can make its contribution to the transformation of city centres," Wnendt continued. "However, the prerequisite is a political and regulatory framework that enables conversions instead of delaying them. If we want to reduce vacancies and make cities more resilient, it is precisely these faster, more flexible and reliable processes that are needed."

The BHRE is a sponsor of the ZIA Spring Report.