Corestate and the analyst firm bulwiengesa have investigated the German market for city quarters and have published a new reference work entitled “City Quarters – An Asset Class of the Future”. The study covers, categorises and systematically evaluates all modern city quarters built between 2009 and 2020 (based on start of construction), including projects under construction or in development. Corestate and bulwiengesa have identified 616 city quarters, corresponding to a market volume of approximately € 200bn.
Frankfurt, 5 May 2021. The real estate investment manager Corestate and the analyst firm bulwiengesa have investigated the German market for city quarters and have published a new reference work entitled “City Quarters – An Asset Class of the Future”. The study covers, categorises and systematically evaluates all modern city quarters built between 2009 and 2020 (based on start of construction), including projects under construction or in development. Corestate and bulwiengesa have identified 616 city quarters, corresponding to a market volume of approximately € 200bn.
Nils Hübener, Chief Investment Officer at Corestate: “City quarters are of great strategic importance to us and our investors today, and their importance will continue to grow moving forward. That is why we have joined forces with bulwiengesa to release a reference work that marks the start of a series of publications in which we will systematically analyse and review this promising asset class for Germany in a depth previously unknown. For example, we have been able to clearly demonstrate that looking beyond the A markets can be worthwhile. After all, half of all city quarters are located in B, C, D or even smaller markets. The investment spectrum is very diverse and broadly based.”
Felix Embacher, Head of Research & Data Science at bulwiengesa: “City quarters combine private and public space and point the way to the future of urban living and working environments. They are a response to megatrends such as urbanisation, demographic change, sustainability and even digitalisation. As mixed-use and consolidation concepts, they also meet the needs of various stakeholders, such as urban planners, commercial and private tenants, and investors alike in a sustainable fashion.”
The study systematically groups city quarters into traditional, mega, small-scale, commercial and residential quarters for the first time, helping to illustrate significant differences in how prevalent the types of quarters are at macro level. It notes that mega quarters and vertical quarters are found almost exclusively in A markets, whereas small-scale and residential quarters are more evenly spread out among Germany’s cities. Of the quarters analysed, 71% are currently under construction or still in planning, indicating that the asset class will be of tremendous importance in the future.
As compact, mixed-use urban units, city quarters play an important role as ESG-compliant concepts, since they often involve regeneration and urban consolidation efforts. The mix of uses found in quarters has also proved to be a successful model in times of COVID-19, as many city quarters combine healthcare, social services and workplaces in a compact space.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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