At the Bavarian Real Estate Day 2025, organized by the BFW Landesverband Bayern e.V., our Managing Director Dr. Marian Dietzel spoke in his presentation about the opportunities and challenges of small residential complexes in urban environments.
Small residential complexes offer an interesting opportunity for sustainable urban development. Due to the limited availability of land and the need for compatible redensification, they are becoming increasingly important. They enable flexible living concepts and promote social mixing in existing neighborhoods.
The opportunities include shorter planning and approval times, lower financial risk and customizable floor plans that can cater to specific customer requirements. Such projects also benefit from an equity-rich buyer clientele and a high degree of flexibility in sales.
However, the advantages are offset by challenges: Construction costs per square meter are higher, economies of scale in administration and management are limited, and parking space requirements and mobility concepts often require complex solutions. There is also a risk of construction delays due to neighboring complaints and bureaucratic hurdles in approval processes.
Despite these challenges, small residential complexes offer an attractive opportunity to design urban living space sustainably and in line with demand.
