Catella Project Management has submitted planning applications for an ambitious mixed-use development in Berlin-Neukölln, directly adjacent to the historic Tempelhof Field, as Germany's construction sector continues to stagnate amid affordability concerns. The €20m project represents a bold bet on the capital's resilient rental market, where yields remain attractive despite broader economic headwinds.
The Silbersteinstrasse development will deliver 92 rental apartments across approximately 6,500m², including 24 publicly subsidised units alongside ground-floor retail space. What makes this project particularly compelling for institutional investors is its dual revenue stream model and ESG certification alignment with EU taxonomy requirements - a critical factor as pension funds and insurance companies increasingly mandate sustainable investment criteria.
"Innovation and cooperation are the two headlines of the sustainable investment programme," says Klaus Franken, CEO at Catella Project Management. "Not only does it have to be planned and built differently, in some cases, prefabrication has to be used - the entire process has been optimised. With target identity, this can also be done in harmony with politics and administration. In this way, in addition to ongoing projects, we have around 10,000 new residential units in Germany in the pipeline over the coming years."
The project's strategic positioning beside Tempelhof Field - one of Berlin's most coveted locations - and direct S-Bahn connections positions it to capture premium rental rates whilst addressing the city's acute housing shortage. Construction is scheduled to commence in 2025, with completion targeted for 2027, timing that could capitalise on an expected market recovery as interest rates stabilise.
"Berlin needs flats! Densification and sustainable land use are the order of the day and liveable neighbourhoods need local amenities within walking distance. We can realise these important goals in this ambitious, exemplary project," explains project architect Anne Lampen from Anne Lampen Architekten GmbH.
The development forms part of Catella's broader 'Cooperative Innovative Living Germany' programme, which targets institutional capital seeking stable, inflation-hedged returns through residential assets. With Berlin's residential market showing resilience despite broader German economic challenges, this project offers investors exposure to one of Europe's most liquid rental markets whilst meeting growing ESG mandates.
People mentioned:
- Klaus Franken - CEO, Catella Project Management
- Anne Lampen - Architect, Anne Lampen Architekten GmbH
Companies mentioned:
- Catella Project Management - Property development and project management
- Anne Lampen Architekten GmbH - Architecture firm
- Catella Group - Parent company, property investment and fund management specialist
Image Source: Catella
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