An elderly couple sits on a bench looking towards the mountains.
An elderly couple sits on a bench looking towards the mountains.

Demographic Change Drives Housing Demand
By 2030, the proportion of those over 65 years old will increase to approximately 28%, leading to a growing demand for accessible housing.

Shortage of Accessible Housing
Currently, there is a shortage of approximately 2 million age-appropriate apartments in Germany, as new constructions and refurbishments are not keeping pace with demand.

Municipalities Face Enormous Challenges
94% of municipalities cannot meet the increasing demand – lack of budget and construction concepts hinder expansion.

High Demand for Scalable Housing Solutions
Age-appropriate real estate with innovative financing is in high demand – arcneo combines social impact with economic scalability.

Knowledge

Demographics and Real Estate: How Change Influences Demand

Jonathan Alborscheit
Jonathan Alborscheit

Jonathan Albroscheit

·

5

min. read

Mar 21, 2025

Knowledge

Demographics and Real Estate: How Change Influences Demand

Jonathan Alborscheit

Jonathan Albroscheit

·

5

min. read

Mar 21, 2025

The demographic change presents Germany with significant challenges, especially in the housing situation of older people. According to the Federal Government's Ninth Report on Aging, older people in Germany live varied and active lives into old age, but often encounter barriers in their living environment. Many live in housing that is not suitable for their age, which restricts their independence.

This directly affects the real estate market, presenting challenges for both municipalities and investors. In this article, we analyze these developments and show how arcneo develops innovative solutions for this challenge.

Demographic Changes in Germany's Age Structure

Germany is aging increasingly. According to the Federal Statistical Office, the proportion of those over 65 will rise to about 28% by 2030. The group of those over 80 years old is growing particularly rapidly – their number could increase from the current approximately 6 million to over 10 million by 2050. At the same time, the number of younger working individuals is decreasing, which is also changing the financial foundations for housing and social concepts in the long term.

Impact on Real Estate Demand

While the overall population is declining, the demand for age-appropriate housing is increasing significantly. However, many existing properties are not barrier-free.

The impact on real estate markets varies regionally:

  • Urban Areas: In metropolises like Berlin, Munich, or Hamburg, the demand for barrier-free housing is growing. Yet, new constructions are not keeping pace with demand, leading to rising prices.

  • Rural Areas: Many older people want to stay where they are rooted. However, there is often a lack of age-appropriate housing options, while at the same time, younger generations are migrating away.

It is estimated that around 2 million age-appropriate apartments are currently missing in Germany. However, the construction of new age-appropriate housing is not keeping up with demand, and renovations are often costly and complex.

Challenges for Municipalities

Many cities and municipalities face the challenge of providing age-appropriate housing. According to a survey by the German Association of Cities and Municipalities, 94% of the municipalities cannot meet the increasing demand.

Key obstacles:

  • Lack of financial resources: Many cities and municipalities cannot sufficiently support the construction or renovation.

  • Lack of scalable construction concepts: High construction costs often prevent the implementation of economically viable projects.

  • Lack of partners: Municipalities often lack specialized partners who not only provide concepts but also support implementation with expertise and resources.

Challenges of Older Adults

Many elderly people wish to remain in their familiar surroundings, but their homes are often not suitable for aging. Narrow bathrooms, lack of elevators, and high door thresholds make daily life difficult. Renovation would be necessary, but it is associated with high costs.

Many elderly people are willing to move to age-appropriate living situations—according to a study by the Federal Institute for Building, Urban, and Spatial Research, households of seniors aged 65 and older show an increased willingness to do so. At the same time, the costs for age-appropriate renovations are often high: measures such as installing a ramp or a vertical lift can cost between 5,000 and 12,000 euros. These financial hurdles make moving to age-appropriate housing the only realistic option for many. Particularly in demand are modern, barrier-free apartments with well-thought-out concepts that enable independent living.

Invest in real estate now

Expand your portfolio with one of the most value-retaining asset classes of recent decades. Gain access to our current projects.

Mehrfamilienhaus in Holzbauweise gebaut in dem Konzept arcneo

The arcneo Approach: Age-Appropriate Residential Construction

arcneo develops housing solutions specifically tailored to the needs of older adults—economically scalable, sustainable, and adaptable to different locations. Additionally, we enable our clients to strategically allocate capital for these projects, actively promoting social sustainability.

Our solution approach:

  • Cost-effective construction: Modular concepts and digital planning reduce construction costs and accelerate implementation.

  • Accessible, future-proof housing solutions: Thoughtful layouts, innovative materials, and smart technologies enhance living comfort.

  • Partnerships with municipalities and investors: Through intelligent financing models and collaborations, we create affordable senior-appropriate housing.

Conclusion

Demographic change is fundamentally altering the real estate market. While the demand for age-appropriate housing is continuously growing, there is a lack of suitable offerings in many places. Municipalities and investors face the challenge of developing new housing concepts that are barrier-free, affordable, and sustainable.

arcneo addresses this very issue: With innovative, economically viable solutions, we are shaping the living space of the future – for self-determined living in old age. Through our bond, investors can actively contribute to solving this societal problem and creating sustainable living spaces.

Demographic Change Drives Housing Demand
By 2030, the proportion of those over 65 years old will increase to approximately 28%, leading to a growing demand for accessible housing.

Shortage of Accessible Housing
Currently, there is a shortage of approximately 2 million age-appropriate apartments in Germany, as new constructions and refurbishments are not keeping pace with demand.

Municipalities Face Enormous Challenges
94% of municipalities cannot meet the increasing demand – lack of budget and construction concepts hinder expansion.

High Demand for Scalable Housing Solutions
Age-appropriate real estate with innovative financing is in high demand – arcneo combines social impact with economic scalability.

Knowledge

Demographics and Real Estate: How Change Influences Demand

Jonathan Alborscheit
Jonathan Alborscheit

Jonathan Albroscheit

·

5

min. read

Mar 21, 2025

Knowledge

Demographics and Real Estate: How Change Influences Demand

Jonathan Alborscheit

Jonathan Albroscheit

·

5

min. read

Mar 21, 2025

The demographic change presents Germany with significant challenges, especially in the housing situation of older people. According to the Federal Government's Ninth Report on Aging, older people in Germany live varied and active lives into old age, but often encounter barriers in their living environment. Many live in housing that is not suitable for their age, which restricts their independence.

This directly affects the real estate market, presenting challenges for both municipalities and investors. In this article, we analyze these developments and show how arcneo develops innovative solutions for this challenge.

Demographic Changes in Germany's Age Structure

Germany is aging increasingly. According to the Federal Statistical Office, the proportion of those over 65 will rise to about 28% by 2030. The group of those over 80 years old is growing particularly rapidly – their number could increase from the current approximately 6 million to over 10 million by 2050. At the same time, the number of younger working individuals is decreasing, which is also changing the financial foundations for housing and social concepts in the long term.

Impact on Real Estate Demand

While the overall population is declining, the demand for age-appropriate housing is increasing significantly. However, many existing properties are not barrier-free.

The impact on real estate markets varies regionally:

  • Urban Areas: In metropolises like Berlin, Munich, or Hamburg, the demand for barrier-free housing is growing. Yet, new constructions are not keeping pace with demand, leading to rising prices.

  • Rural Areas: Many older people want to stay where they are rooted. However, there is often a lack of age-appropriate housing options, while at the same time, younger generations are migrating away.

It is estimated that around 2 million age-appropriate apartments are currently missing in Germany. However, the construction of new age-appropriate housing is not keeping up with demand, and renovations are often costly and complex.

Challenges for Municipalities

Many cities and municipalities face the challenge of providing age-appropriate housing. According to a survey by the German Association of Cities and Municipalities, 94% of the municipalities cannot meet the increasing demand.

Key obstacles:

  • Lack of financial resources: Many cities and municipalities cannot sufficiently support the construction or renovation.

  • Lack of scalable construction concepts: High construction costs often prevent the implementation of economically viable projects.

  • Lack of partners: Municipalities often lack specialized partners who not only provide concepts but also support implementation with expertise and resources.

Challenges of Older Adults

Many elderly people wish to remain in their familiar surroundings, but their homes are often not suitable for aging. Narrow bathrooms, lack of elevators, and high door thresholds make daily life difficult. Renovation would be necessary, but it is associated with high costs.

Many elderly people are willing to move to age-appropriate living situations—according to a study by the Federal Institute for Building, Urban, and Spatial Research, households of seniors aged 65 and older show an increased willingness to do so. At the same time, the costs for age-appropriate renovations are often high: measures such as installing a ramp or a vertical lift can cost between 5,000 and 12,000 euros. These financial hurdles make moving to age-appropriate housing the only realistic option for many. Particularly in demand are modern, barrier-free apartments with well-thought-out concepts that enable independent living.

The arcneo Approach: Age-Appropriate Residential Construction

arcneo develops housing solutions specifically tailored to the needs of older adults—economically scalable, sustainable, and adaptable to different locations. Additionally, we enable our clients to strategically allocate capital for these projects, actively promoting social sustainability.

Our solution approach:

  • Cost-effective construction: Modular concepts and digital planning reduce construction costs and accelerate implementation.

  • Accessible, future-proof housing solutions: Thoughtful layouts, innovative materials, and smart technologies enhance living comfort.

  • Partnerships with municipalities and investors: Through intelligent financing models and collaborations, we create affordable senior-appropriate housing.

Conclusion

Demographic change is fundamentally altering the real estate market. While the demand for age-appropriate housing is continuously growing, there is a lack of suitable offerings in many places. Municipalities and investors face the challenge of developing new housing concepts that are barrier-free, affordable, and sustainable.

arcneo addresses this very issue: With innovative, economically viable solutions, we are shaping the living space of the future – for self-determined living in old age. Through our bond, investors can actively contribute to solving this societal problem and creating sustainable living spaces.

Invest in real estate now

Expand your portfolio with one of the most value-retaining asset classes of recent decades. Gain access to our current projects.

Mehrfamilienhaus in Holzbauweise gebaut in dem Konzept arcneo
Mehrfamilienhaus in Holzbauweise gebaut in dem Konzept arcneo

Directing capital

where it creates real added value.

Contact

arcneo GmbH
Rudower Chaussee 29
12489 Berlin



+49 160 89 12780

Contact

arcneo GmbH 


Rudower Chaussee 29
12489 Berlin

+49 160 89 12780

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Invest in the future with sustainable residential construction projects.

Directing capital

where it creates real added value.

Contact

arcneo GmbH
Rudower Chaussee 29
12489 Berlin

+49 160 89 12780