Berlin's chronic housing shortage is about to get a sustainable answer. Urban Partners, through its €3.65bn Nordic Strategies Fund V, has secured planning consent for a 140-unit built-to-rent development in Pankow, one of the German capital's most sought-after residential districts.
The scheme represents a strategic bet on Germany's underserved rental market, where demand consistently outstrips supply. Nrep, Urban Partners' real estate arm, will deliver 9,000m² of net living space across four buildings on a 6,000m² site. The predominantly two- and three-bedroom apartments target young families, a demographic that's been squeezed by Berlin's rental crisis. Construction kicks off in early 2026, with KondorWessels Berlin handling delivery and bdp real estate acting as client representative. Completion is slated for late 2027.
What makes this project particularly compelling for investors is the alignment of ESG credentials with institutional-grade returns. The development targets BREEAM "Very Good" certification, Efficiency House 40 status with KFN funding, and an EPC A+ rating. It's a template for how sustainability can drive both rental premiums and long-term asset value in markets where green credentials are increasingly non-negotiable.
"Berlin, like many major cities, faces a significant shortage of modern housing. With this project, we are demonstrating how modern, sustainable rental apartments can help address this challenge in highly sought-after urban locations. By combining quality living standards and a strong commitment to sustainability, we are creating long-term value not only for future residents but also for urban development as a whole," says Wolfgang Ködel, Managing Director and Head of Germany at Nrep.
The sustainability push isn't just window dressing. Urban Partners is aligning the scheme with Science Based Target Initiative standards, deploying photovoltaic systems, heat pumps, and environmentally responsible building materials. For developers eyeing Germany's BTR market, this project offers a blueprint for navigating increasingly stringent regulatory requirements whilst maintaining commercial viability.
Pankow's appeal is straightforward: cultural cachet meets residential tranquillity, backed by robust infrastructure including schools, transport links, and green spaces. For a fund the size of Nordic Strategies V, currently Europe's largest value-add real estate vehicle at €3.65bn, this 140-unit scheme signals confidence that Germany's housing fundamentals remain sound despite broader economic headwinds.
People mentioned:
- Wolfgang Ködel, Managing Director and Head of Germany, Nrep
Companies mentioned:
- Urban Partners, Investment firm and fund manager
- Nrep, Real estate investor and developer (Urban Partners' real estate arm)
- KondorWessels Berlin, Construction contractor
- bdp real estate, Client representative
Image Source: Render (Copyright Nrep)
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