Housing & Building Master Plan

The Wolfsburg housing offensive - 10,000 new homes by 2025 - Overview of Wolfsburg housing projects

ONLY SLIGHT SIGNS OF EASING AFTER EIGHT YEARS OF HOUSING OFFENSIVE

For eight years now, the city of Wolfsburg has been working with the housing industry to create new residential space - from smaller additions and new buildings in existing neighborhoods to the three large new development areas of Hellwinkel Terrassen, Steimker Gärten and Sonnenkamp. More than 80 sites are in focus for the further development of Wolfsburg's housing market. Around 2500 new apartments and houses have already been occupied. Many more projects are under construction or in the more concrete planning stage, with the goal of launching a total of 10,000 new residential units by 2025.

"I am proud and pleased that we have been able to give many fellow citizens* a new home in recent years," sums up Mayor Klaus Mohrs. "However, as in most cities, we have not yet reached a relaxed housing market in Wolfsburg. Thousands are still looking for housing that suits them. It continues to be one of the issues I am most frequently asked about. We have to work on it continuously to further strengthen our city as a livable place to live, but also as a business location." There continue to be 6,000 seekers on each of the waiting lists for land with the city and for rental apartments with Neuland, Volkswagen Immobilien and Allertal. A lack of housing is often an obstacle to the immigration of skilled workers. As many as 80,000 people still commute to work in Wolfsburg. "Over the past 30 years, it has been shown that economic crises have hardly dampened the demand for housing in our city," Mohrs notes. "It has proven effective to take a long-term view of housing development and not to fundamentally question it in every somewhat uncertain time. We should ensure a diverse supply at all times."

"Residential construction also provides important impetus for urban development," affirms city planning officer Kai-Uwe Hirschheide. "Wolfsburg is getting contemporary living space that upgrades our city. At the same time, we are further developing the infrastructure, from which all Wolfsburgers will benefit. When planning, we always make sure to preserve green spaces and create public areas with a high quality of stay. With this balanced development, Wolfsburg remains livable."

The new construction program is keeping prices stable on Wolfsburg's housing market, primarily because of the strong commitment of the housing companies Neuland and Volkswagen Immobilien (VWI). Together with Allertal Genossenschaft, they determine around 60 percent of Wolfsburg's rental market, where people pay an average of €6.10 per square meter for existing apartments and €6.80 per square meter for new rentals (as of 2018).

In the view of Hans-Dieter Brand, Managing Director of NEULAND Wohnungsgesellschaft mbH, the situation on the housing market is as follows: "We have been noticing a slight easing of the market in Wolfsburg for several months. For us, this means that the residential construction offensive is showing initial success. With a large number of new apartments completed, we are working together to ensure that people in Wolfsburg have the housing they need. Nevertheless, demand remains high, especially for somewhat smaller apartments with up to three rooms." Meno Requardt, spokesman for VWI's management, adds, "The housing offensive has noticeably revitalized Wolfsburg's housing market, significantly increased the diversity of supply, and in some segments has also already slightly eased the market. VWI has fully achieved its goals with its own new residential construction program. With our own new buildings and the new Steimker Gärten district, we represent a 20 percent share of the city's residential construction program. In the future, we will continue to develop our portfolio in a continuous and sustainable manner through moderate new replacements and additions."

The asking rent, which is based on advertisements in portals and generally does not take into account the offers of the housing companies, has fallen again from 9.50 euros in 2015 to 8.80 euros in 2018. To ensure that disproportionately high prices cannot continue to be called in this private housing market, not only is the housing offensive to be continued, but the city is also committed to the continued existence of the rent brake in Wolfsburg. According to the draft version of the Lower Saxony Tenant Protection Ordinance published in the summer by the state of Lower Saxony, the rent brake will no longer apply in the city in the future. However, since the city of Wolfsburg assumes that the housing market will not ease noticeably until the next few years, it is requesting in a statement to the Lower Saxony Association of Cities as part of the association's participation and to the responsible Lower Saxony Ministry for the Environment, Energy, Construction and Climate Protection that the rent brake be maintained until 2025.

In order to be able to manage the development of the housing supply well, the municipality continues to analyze the market and the housing demand and maintains the exchange with the economy as well as with the urban society and politics.

Wolfsburg's goal is to build at least 6,000 new housing units by 2020 in order to provide the many interested parties with living space tailored to their needs.The background to the housing offensive is six key points:

First

More at:

People from all over the world are drawn to our city. A diverse range of housing offers Wolfsburg the opportunity to grow.

Wolfsburg grows sustainably - holistic urban development for tomorrow.

Secondly

The creation of new housing also leads to a reduction in the daily volume of traffic. Because if more people live in Wolfsburg, fewer will have to commute every day. Instead, they can use public transportation or the bicycle within the city.

More at: Reorganizing mobility in the city

Thirdly

The change in living space requirements does not stop at Wolfsburg: 40 years ago, the demand for living space was still 25 square meters per capita. Today we are talking about an average of 43 square meters. This development is linked to increasing singularization: In Wolfsburg, 75 percent of citizens live alone or in pairs. The consequence is that for the same number of inhabitants, much more living space is needed today than in the past.

More at: Attractive and affordable housing for Wolfsburg.

Fourthly

Housing construction and attracting new residents mean: Securing the future of Wolfsburg's infrastructure, increasing the quality of life in urban and local districts, maintaining and expanding school, cultural and leisure institutions.

More under: Wolfsburg stays green

Fifth

New housing construction closes supply gaps. New construction focuses not only on quantity, but especially on quality; it complements existing housing from the 1940s to the 1970s. A future-proof, suitable and appropriately priced supply should be available for every demand.

Sixth

The housing offensive also serves to secure affordable rents. The planned new construction activities deliberately build up vacancies in order to improve the tight housing market situation and enable offerings in all segments. In addition, new housing supply will lead to relocation chains, making more affordable supply available again in older stock.

Central components of the concept are:

The Housing & Building Master Plan is focused on not creating much traffic in the first place. Housing is created as close as possible to most people's jobs and utilities. The short distances are quickly covered on foot, by bicycle or by public transport (ÖV).

• More than 125,000 inhabitants (as of 12/31/2019)
• Almost 80,000 commuters (as of 30.06.2019)

15,000 since 2010

6,000 since 2012

• More than 120,000 employees subject to social security contributions (as of 06/30/2019)

20,000 since 2010

8,000 since 2012

• High gross domestic product per inhabitant*: over 170,000 euros/year (as of 2017)

• Most attractive German city for real estate investors (Lübke & Kelber 2015).
• 60% of rental housing owned by Neuland, Volkswagen Immobilien and Allertal (2011 census)
• 64 % of housing stock from 1950 - 1979 (Census 2011).
• Market-related apartment vacancy rate below 1 %
• Around 6,000 apartment seekers on the waiting lists of the housing associations
• Around 6,000 people registered as interested in a building plot
• Asking rent: 8.80 euros/m² on average (NBank, based on data F&B, 2018)
• More than 2,000 apartments were (re)rented in 2018 by the housing companies Neuland, Volkswagen Immobilien and Allertal (Rental market analysis of the city of Wolfsburg 2019)
• Re-let rent: 6.80 euros/m² on average (Rental market analysis of the city of Wolfsburg 2019)

Need for housing

1 Wolfsburg's housing offensive is meeting the demand that has existed for years.

Thousands of new apartments and houses will be built in Wolfsburg in the coming years.

Living in Wolfsburg means short distances, less congestion and more time for the finer things. You can also reach your destination quickly on foot, by bike or by bus.
www.wolfsburg.de/verkehrskonzept
www.wolfsburg.de/mobilitaet

Action in the Allerpark, Movimentos in the Autostadt, a visit to phaeno, poetry slam in the cultural center

modern art in the art museum or professional sports at the Wölf*innen and Grizzlys: You will find

Whether it's the Drömling, the city forest, the Ilkerbruch or the Allersee: many beautiful places entice you to get out into nature after work.
nature. Around 30 percent of the city is pure forest and recreational area, and even with the new residential projects
Wolfsburg remains the greenest city in Lower Saxony.

Wolfsburg offers excellent educational and childcare facilities from crèche to university and is one of the most family-friendly cities in the whole of Germany. In terms of childcare rates, Wolfsburg is well ahead of the rest of the country.
www.wolfsburg.de/familie

Fiber-optic connection for all, jobs with prospects, new mobility solutions and innovative

architecture: A city full of researchers and developers. By choosing Wolfsburg, you are also choosing the right

Whether it's a modern single apartment, your own house with a garden, or exciting alternatives like
communal living: Between rural atmosphere and big city character, the variety of living
living variety leaves no wishes unfulfilled.
www.wolfsburg.de/baugebiete

Wolfsburg is a city of newcomers. Here you will quickly find a connection, meet openness and like-minded people. Family, old and new friends make the city your home.

Lunch with colleagues or a stroll through the city center with the designer outlets: new people and the

Wolfsburg is not as expensive as you might think and the value of your own apartment or
of your house is secured in the long term. High location qualities, favorable re-rent prices,
innovation and rent-controlled offers make living in Wolfsburg worthwhile.

In an interview, the managing directors of Volkswagen Immobilien, Michael Leipelt, and the municipal housing company Neuland, Hans-Dieter Brand, describe their view of the Wolfsburg housing market of today and tomorrow.

Leipelt:

In recent years, I would describe the Wolfsburg housing market as dynamic with very high demand. As a result, we also have very few vacancies. As a housing company and real estate service provider, we have been committed to this location for decades and actively support the city's housing offensive with our own new housing construction program. The high demand for modern and contemporary housing offers the opportunity to optimize inner-city areas without giving up the character of a green city. Incidentally, interest in Wolfsburg remains high among external investors as well, as we are currently clearly noticing with our large-scale Steimker Gärten construction project.

Brand: Neuland is already over 80 years old and, as a subsidiary of the city, has helped to build and develop Wolfsburg from the very beginning. However, the requirements have changed. In the 1950s and 1960s, affordable housing was needed quickly; today, it's much more about the neighborhood, infrastructure and a certain level of comfort. We are also building more again and have already completed the first projects and have others in the pipeline.

Fire:

With the housing offensive, we are succeeding in getting Wolfsburg's most important housing companies to pull together and develop the city together. In this way, we can create much more sustainable and comprehensive structures that benefit all residents. We have already begun to adapt to the challenges of the future - on the one hand, more and more older tenants living alone, and on the other, the young, tech-savvy singles and small families. We have concepts for both of these very different groups, which we implement stringently without losing sight of the people. Low-barrier versus fiber-optic network, you could say.

Leipelt:

For Volkswagen Real Estate, the housing offensive is of immense importance. Our colleagues in engineering and sales are working very closely together to create technical and high-quality apartments that are in demand on the market. We have the opportunity to help shape a sustainable Wolfsburg and to develop neighborhoods in a sustainable way. Ultimately, the housing offensive is the only right way to bring relief to the market with new offerings and keep rents moderate.

Leipelt: We believe in the innovative power of Volkswagen, the city of Wolfsburg and all the utilities that are helping to make a neighborhood like Steimker Gärten a reality. We are sure that the current challenges will be overcome.

Fire:

We are also confident that Volkswagen's situation will stabilize. So far, we see no reason to believe that demand will decline. Quite the opposite - the number of people looking for housing continues to rise and we hardly have any vacancies. For many years, there was little or no construction in Wolfsburg. That's why a kind of pent-up demand developed. We are noticing this, for example, in our new Goethepark construction project. Many of our existing tenants were waiting for this kind of qualitative improvement in the neighborhood and moved in directly. They wanted to improve, but wanted to stay at the location. The apartments freed up as a result are more favorably priced and are also rented out again directly.

Leipelt:

At first glance, you might think so. Analyses of rent levels in Wolfsburg, which included the three major housing associations, have shown that affordable housing is certainly available in the city. For example, 85 percent of VWI's housing stock is currently rented for less than 7 euros per square meter (net/cold). In order to make a profit, we would actually have to be on the market with completely different rents. While Volkswagen Immobilien is committed to profitability, it is not profit-driven and at the same time has a mandate from the employee representative body to offer affordable housing.

Brand: Of course, we also have to be profit-oriented to a certain extent, whereby the question of margin and the question of consideration are essential. As a municipal company, we are in the fortunate position of being able to take a very long-term view. The current new construction projects are not profitable at first glance. They only work in the very long term. We make sure that the financing is paid off after 25 to 30 years and that the development of the value of the housing construction is profitable again.

Leipelt:

I would also like to add that we have been operating here for years without any further subsidy programs. In order to make these attractive for investors, it is up to the legislators, the federal and state politicians.

Fire:

In Dessauer Strasse in Westhagen, 140 apartments have been vacant for several years because they can no longer be rented out. Reviving these apartments would involve disproportionate expense. We have detected pollutants on a scale that makes re-renting impossible. For this reason, and above all for the urban development of Westhagen, this area is being deconstructed. In the long term, this will strengthen the district. Because we have 2,000 apartments there alone, this is naturally a worthwhile prospect for Neuland. When we bought "Don Camillo" and "Peppone" in Detmerode, we did not assume that we would demolish them. However, the problem with pollutants there is even greater than in Dessauer Strasse, so that we are not allowed to re-let apartments that become vacant there either. From today's perspective, renovation would be disproportionately expensive. In addition, the houses would have to be vacated in the same way. Whenever someone moves out, we are not allowed to reoccupy their apartment. That is why there is no alternative to demolition and new construction.

Leipelt:

In any case, comfort is very important to people. Desired features such as fitted kitchens and floor coverings as well as a certain individuality are in demand. We have noticed this in our previous new construction projects in Fallersleben and at Salzteich. Here we have obviously been able to meet the wishes and expectations. All the new apartments have already been rented out. There is also a greater demand for low-barrier apartments, which we are meeting in our existing portfolio with age-appropriate apartment conversions as part of our "Wohnen Plus" program. But the connected, smart home is also increasingly a topic.

Fire:

With us, it looks a little different. Of course, we also have this clientele in some of our new construction projects. Otherwise, small apartments are still in demand. We can rent out 1- and 2-room apartments without any problems. Demand is not quite as high for the larger apartments. Low-barrier apartments are in demand - but not so much barrier-free apartments in the sense of wheelchair-accessible apartments. In the Neue Burg in Detmerode, for example, we have not yet found any interested parties for two apartments that are accessible to the disabled because, for example, the door handles are mounted low for wheelchair users. Of course, many people don't need that. In the future, we will probably retrofit rather than build barrier-free apartments from the outset.

Fire:

On the whole, the cooperation works excellently and is even getting better all the time. Both sides are making great efforts to find a good solution together. Sometimes, as an investor, you would wish for a bit more stringency, even tighter processes and faster results. Compared to other municipalities, however, the cooperation with the city of Wolfsburg is fantastic.

Fire:

From my point of view, demographics and thus the issue of barrier-free living will play a role. We already have many older tenants. That will bring challenges in the existing buildings, some of which are listed. We also have to think about alternative forms of housing, for example more communal living.

Leipelt:

Wolfsburg is a special market. On the one hand, we will have energy-efficient upgrades to existing buildings, and on the other hand, the new urban neighborhoods with special features such as digital services and a comprehensive charging infrastructure for electromobility. But I'm also curious to see how the people of Wolfsburg will adapt when their cars, instead of being parked outside their front doors, are parked in the parking garage or in a central parking lot themselves. In addition, there will also be newcomers who will only be working and living in Wolfsburg for a certain period of time. We are preparing for this with new offerings such as business apartments. Wolfsburg will remain an exciting housing market with prospects.

Fire:

Overall, Wolfsburg's housing market will be as diverse as the city's residents and lifestyles.