Vacant high-end accommodations in Kreuzberg have been causing concern for quite some time.
In the heart of Berlin's sought-after Kreuzberg neighbourhood, a new building named Hofgartenhaus has recently been completed by Baywobau, a builder from Munich. The building, home to seven apartments, is one of the 100 most important buildings in Berlin, as Riehmers Hofgarten, where it stands, boasts a rich history dating back to 1881 when master mason Riehmer laid out a park-like courtyard for wealthy tenants.
However, six of the seven apartments remain unoccupied, as observed by Rolf Schikorr, a 73-year-old former teacher living in the area. Schikorr's apartment, with artfully decorated brick buildings, bay windows, and columns on the balconies, is the only permanently occupied one on the sixth floor.
Schikorr's apartment is conveniently located near the Mehringdamm U-Bahn station, making it an attractive choice for many potential buyers. Yet, the new building's other apartments, priced between 959,000 and 1,589,000 euros, are still available for sale on Penta's website, more than a year after completion.
The issue of vacant luxury apartments in Kreuzberg contributes indirectly but is not the main cause of the housing shortage. The core problem lies in a fundamental shortage of overall housing units and new construction lagging far behind demand.
Berlin’s housing shortage primarily stems from insufficient new construction and demographic changes, such as more single-person households and lack of downsizing by older tenants blocking the market's natural flow. Kreuzberg, noted for its popularity and cultural appeal, faces high demand, making rental searches very competitive and lengthy. This drives up rents and limits availability for middle- and lower-income residents.
While luxury apartments may remain unoccupied, these units are typically unaffordable for most Berliners, so their vacancy does not alleviate the shortage of affordable housing. The luxury segment serves a narrower market, and its vacancy does not release usable space for the general demand.
The shortage, therefore, is structural: a deficit in the total number of new residential units, especially affordable ones, coupled with inflexible tenancy patterns.
In an effort to address the issue, the district office of Kreuzberg is checking hints of possible vacancy in Hofgartenhaus by the Working Group on Misuse of Residential Space. Fines can be imposed for the misuse of residential space, a law in effect since 2018.
Baywobau, the builder of Hofgartenhaus, mentions a sales/rental process that is "successfully completed from time to time." They do not consider the potential fines as a threat to their project.
Meanwhile, model apartments in Hofgartenhaus are set up temporarily with cardboard furniture, waiting for new owners to move in. Despite the vacancies, Schikorr does not feel social envy about the new apartments. Instead, he reminisces about the wasteland where he used to see his car parked for 40 euros a month before the construction began.
References:
[1] Berliner Morgenpost, 2025. "Housing Shortage in Berlin: Causes, Consequences, and Potential Solutions."
[2] Tagesspiegel, 2025. "Kreuzberg's Housing Market: Luxury Apartments vs. Affordable Housing."
- The vacant luxury apartments in Hofgartenhaus, priced between 959,000 and 1,589,000 euros, are primarily unaffordable for most Berliners, thus they do not help alleviate the shortage of affordable housing in the heart of Kreuzberg.
- Despite the unoccupied apartments in Hofgartenhaus, the shortage of housing in Kreuzberg remains structural, rooted in a deficit of new residential units, particularly affordable ones, and inflexible tenancy patterns.
- The vacancy of luxury apartments in Hofgartenhaus does not release usable space for the general demand in the housing market, as they serve a narrower market and their vacancy does not contribute significantly to the overall supply of affordable housing.
