TAG Immobilien AG: Prefabs make a comeback - Tenants appreciate their advantages
Prefabs make a comeback: Tenants appreciate their advantages
Hamburg (6 September 2016) - After being scorned for decades, prefabricated panel block buildings are now witnessing a renaissance. Property owners and tenants in Germany appreciate their advantages, including the options for modernisation with individual concepts thanks to the standardised design.
"'Prefabs' are very popular with our tenants and demand for them is huge," says Claudia Hoyer, the TAG Management Board member responsible for property management. In Erfurt, for example, the company has a vacancy rate of only 2.5 percent in its prefabricated buildings, and tenants stay in them a long time.
Another reason for the return of prefabs is the booming housing market. According to experts, Germany has a shortage of about 950,000 homes. "When you think about building new affordable housing, it's hard to ignore serial construction methods," says Hoyer. Individually built homes are almost unaffordable to average earners, especially in cities with higher rents. "We are witnessing a return of the prefab - adapted to today's requirements including the desire for larger flats," says Hoyer.
Prefabricated buildings make up 38 percent of the TAG portfolio. This corresponds to 32,000 housing units, most of them in eastern Germany. Because this is a standardised type of building, modernisation, renovations and maintenance are relatively low-cost and quick to implement. Once a concept has been developed, e.g. regarding layout changes, it can be transferred to any location.
For example, TAG will convert small three-bedroom apartments into generously sized two-bedroom flats or combine two units into one - with an open living room and kitchen area. Internal bathrooms are relocated and provided with a window. If costs are to remain reasonable, this is only possible with prefabricated buildings. There is an additional advantage: unlike other older residential properties, the blocks are often equipped with lifts, balconies and are well integrated into the surrounding area - be it their proximity to kindergartens, schools, shopping and medical care, or access to public transport. As a result, the neighbourhoods are popular with students, families and older people.
"The prefab's bad reputation has been overcome," says Hoyer, adding that today, it is more important to people to live in their preferred districts than whether their flat has a prefabricated or conventional structure. "And if their new home is in good condition to boot, and has a good layout and balcony, then these are clear advantages in favour of prefabricated panel-block buildings, which many tenants have now come to recognise."
Press material i.e. pictures regarding prefabs pre and post modernisation for download under the following link: http://www.tag-ag.com/bilder/plattenbau
Contact for the tenant survey:
End of Media Release
Issuer: TAG Immobilien AG
Key word(s): Real estate
2016-09-05 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG.
|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 388|
|ISIN:||DE0008303504, XS0954227210, DE000A12T101|
|WKN:||830350, A1TNFU, A12T10|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP Media|