Hardly any other industry is subject to change as much as the real estate market. New construction projects, sometimes entire city districts, are constantly giving our cities a new look. But external influences such as political decisions and social developments also keep the market on its toes.
Cologne is diverse, just like its residents. No two neighborhoods are alike. In Lindenthal, families appreciate the quiet atmosphere around the city forest, while Ehrenfeld attracts students with its cool bars and cafés. Then there are the neglected, almost forgotten neighborhoods of Cologne. Districts such as Mülheim, Kalk, and Höhenberg tend to have a bad reputation in the city, not least because of their lack of appeal, few leisure activities, and supposedly high crime rates.
However, in recent years, some of these neighborhoods have been regaining attention. The process of gentrification, which was first described in London at the end of the 19th century, can be observed, whereby the upgrading of a neighborhood, combined with initially low rents, attracts interested students, artists, and young families. New shops, cafés, and leisure facilities soon follow. A social mix of different population groups and cultures emerges. This situation lasts for a short time before the entire process begins to reverse. The newly gained attractiveness of the neighborhood causes the cost of living to rise. In addition to rising rents, poorer residents can hardly afford many of the new commercial offerings, which are often perceived as an expression of greater diversity and quality of life, due to their high prices. Landlords renovate and rent at higher prices to affluent citizens, who gradually move in. The result: socially disadvantaged sections of the population are being displaced and forced to move away. This is clearly illustrated by the example of Mülheim, where rents have risen by 14% across the entire district in recent years.
In principle, gentrification has the advantage of upgrading a district and thus also brownfield sites and buildings in need of modernization. However, the resulting costs for landlords lead to higher rents. One solution to this problem would be to use public subsidies so that modernization costs do not have to be passed on to tenants. This would allow housing to be preserved for socially disadvantaged groups.
In Cologne, the problem is being tackled by building additional public housing. Numerous construction projects are in the planning and construction phases, which will create several thousand square meters of publicly subsidized housing.
