As Germany grapples with a severe housing shortage, the government is pouring taxpayer money into converting empty office buildings—vacated in the wake of COVID-19—into long-term accommodations for migrants. The move, though meant to address immediate housing needs, is stirring frustration among citizens who say they’re being priced out of the market while migrants are housed at premium rates.
According to a new study by real estate firm Bulwiengesa, up to 152,000 apartments—each roughly 70 square meters—could potentially be created in Germany’s top seven cities by repurposing underused office spaces. The study was commissioned by Berlin Hyp, a major property financier.
But here’s the catch: turning old office blocks into livable homes isn’t easy—or cheap. Germany’s dizzying 20,000 building codes, rising interest rates, and inflated construction costs are slowing progress. Retrofits often require extensive work—think plumbing, staircases, balconies, fire safety upgrades, and soundproofing—not to mention converting office lobbies into street-level apartment entries.
Still, the government isn’t shying away from footing the bill when it comes to housing migrants. In Berlin, for instance, the Senate is moving forward with plans to transform entire office complexes into permanent asylum seeker housing. One property originally priced at €25.80 per square meter is now being rented by the State Office for Refugees at €40—a steep jump funded by taxpayers.
And that’s just the tip of the iceberg. Some of the city’s high-profile deals include €165 million for a site in Kreuzberg to house 1,500 migrants over a decade, €143 million in Lichtenberg for 1,200 people, and another €118 million in Westend to accommodate 950 people—all on 10-year leases.
Critics argue that while the state is fast-tracking housing for migrants, ordinary Germans are being left in the lurch—unable to afford homes in a market with a shortfall of nearly 800,000 apartments. As more office towers turn into migrant housing, many are asking: where’s the same urgency for citizens waiting in line for affordable housing?
