Struggling to find a flat in Germany? Maybe your next home could be in a building originally designed for desks, meetings and photocopiers rather than residents.
Germany’s housing crisis has become so severe that policymakers are increasingly turning to an unlikely source of new homes: empty offices.
With millions of square metres of commercial space standing vacant across the country, local governments and the federal administration are trying to make it easier and cheaper to convert former workplaces into apartments.
In July, applications opened for the federal government's new €300 million "Commercial to Residential" programme. The scheme offers grants of up to €30,000 per new apartment or up to €300,000 per investor, provided converted buildings meet energy-efficiency requirements.
Verena Hubertz, the federal minister responsible for housing, urban development and construction, said the program was designed to give empty commercial properties a second chance while helping address the country’s chronic shortage of housing.
Plenty of space, but not the right kind
On paper, the logic is straightforward. Germany is not short of buildings. What it lacks is housing in the places where people need it.
Currently, more than 12 million square metres of office space stand vacant across Germany. Commercial vacancy rates in Germany’s seven largest cities are estimated to have tripled since the pandemic, as remote and hybrid working reduced demand for traditional office space.
READ ALSO: Why an unresolved housing referendum is shaping Berlin’s election campaign
At the same time, housing shortages have become increasingly acute. Official figures put the shortfall at about 1.4 million apartments, while fewer new homes were built in 2025 than in any year since 2012.
The mismatch is particularly visible in major cities. Around two million square metres of office space are currently vacant in Berlin. In Munich, the number is said to be over one million square metres, equivalent to roughly 10 percent of the city’s office stock.
Berlin and Munich test new approaches
In Berlin, the Greens have proposed a package of measures aimed at accelerating conversions in the lead up to state elections on September 20th.
The party wants housing subsidies to be extended to conversion projects and plans to create a dedicated renovation and repurposing agency. The agency would identify suitable buildings, connect owners with developers and housing companies, and help navigate regulatory obstacles.
The proposals are partly inspired by projects already being developed by companies including Communits, which plans to install compact six-square-metre living units inside underused office buildings, with shared kitchens, bathrooms and communal areas.
A pilot "test living" project is due to begin in Berlin's Sarotti-Höfe complex before the end of the year, according to a report byTagesspiegel. The company says it aims to create 5,000 housing units by 2027, primarily targeting students and apprentices, with rents capped at a maximum of €500 per month.
READ ALSO: How foreigners are facing discrimination on Germany's rental market
Munich is pursuing a similar strategy. According to reports in Abendzeitung, the city has launched an Office-to-Housing Conversion Agency to identify suitable buildings, advise owners and support projects through the conversion process.
City leaders believe vacant office space could potentially yield around 10,000 apartments.
There are already examples showing what can be achieved, including a former office building in western Munich that has been converted into 33 apartments for homeless women.
Conversion challenges
Despite the enthusiasm, many experts caution that converting offices into homes is not a simple fix.
In 2024, the Ifo Institute estimated that up to 60,000 apartments could potentially be created by converting commercial properties in Germany’s seven largest cities – but the institute also warned that many schemes may not be financially viable because office buildings often require extensive and expensive alterations before people can live in them safely.
Residential buildings must meet different requirements relating to fire safety, sound insulation, accessibility and structural standards.
Property owners’ organisation Haus & Grund has also warned against unrealistic expectations. Representatives point to permitting requirements, renovation costs, new wiring, kitchens, bathrooms etc. Also, not having been designed for family life, some office developments lack nearby schools, parks, shops, childcare facilities or public transport links.
But that doesn’t mean conversions can’t work. Architect Rudolf Hierl told BR24 that many office buildings constructed since the 1980s already possess characteristics that make conversion feasible, including solid structures and good insulation.
The key, he said, was choosing the right buildings.
READ ALSO:
Comments