Always in the thick of it for 100 years

On July 7, 2024, STADT UND LAND, founded as "Märkische Scholle", turned 100 years old. If you leaf through the company's chronicles, it is clear that the vicissitudes of German history have not left the municipal housing company untouched. Inflation, the global economic crisis, war, division, reunification, the fall of the Berlin Wall; in between and afterwards, times of upswing, new beginnings and reconstruction. STADT UND LAND was always right in the middle of it all.

Since its foundation as "Märkische Scholle" on July 7, 1924, STADT UND LAND's corporate philosophy has been to provide housing for broad sections of the population and especially for people on lower incomes.

What began with the construction of 59 apartments in Wittenau and Britz was continued on a larger scale in Neuenhagen between 1928 and 1930: out of the cramped conditions and stink of the Berlin tenements - light, air and sun for everyone, was the motto when the "Grüner Winkel" garden home estate was built. The fact that STADT UND LAND had already built around 2,400 apartments in various districts of Greater Berlin in the early 1930s, including Lichtenberg, Friedrichsfelde, Johannisthal, Neuenhagen, Pankow, Britz, Lichterfelde Süd and Wittenau, was an expression of its brisk construction activity. The company built detached houses in Niederschöneweide and Kleinmachnow. Exemplary housing estates were created for broad sections of the population.

Important milestones in STADT UND LAND's history show its close connection to the fortunes of the city of Berlin: almost one in five of STADT UND LAND's apartments were destroyed or severely damaged after the Second World War; expropriation in the East and "survival" under the care of GSW - of the 2,352 apartments formerly located almost exclusively in the eastern part of Berlin, only 13 apartments, two garages and a storage property in the western part of the city remained in the company's possession. On January 1, 1958, STADT UND LAND became independent again with around 10,000 apartments.

The 1960s, 1970s and 1980s were characterized by intensive construction and renovation - this was reflected in neighbourhoods such as the John-Locke-Siedlung in Lichtenrade, the Rollberg and High-Deck-Siedlung in Neukölln and the Landhäuser in Rudow.

After reunification in the 1990s, the company merged with Wohnungsbaugesellschaft Treptow mbH and extensively refurbished its portfolio. Other important milestones in this most recent period were the construction of the new Altglienicke housing estate and the takeover of the management of WoGeHe Wohnungsbaugesellschaft Hellersdorf mbH, which formerly had around 20,000 apartments in the large Hellersdorf housing estate.

The first years of the 2000s were characterized by modernization, restructuring and consolidation. Tight public budgets, the reduction of subsidies and the state's withdrawal from social responsibility set the political framework for the business activities of the STADT UND LAND Group in 2005. The market was and is determined by a lack of economic growth, rising unemployment and a demographic development of the population that is characterized by an ageing population, declining birth rates and isolation. Against this backdrop, the competitive conditions on the Berlin real estate market have become even tougher. Growing vacancy rates and rising revenue losses were the result.

During these years, the strategic focus of the CITY AND COUNTRY Group's business activities continued to be on sustainable debt reduction. The aim was to further reduce the interest and repayment burden. The focus was on portfolio management and maintenance. Extensive measures served to enhance the value of the portfolio, target group-oriented marketing, the exploitation of potential for rent increases and stringent cost management. At the same time, ambitious refurbishment projects were completed in these years, including the Grabenviertel in Hellersdorf, which comprises a total of 1,849 apartments, and the Neukölln "Siedlung der Düfte" estate around Holzmindener Strasse with its 334 apartments in 6- and 8-storey buildings.

In 2010, around 90,000 people lived with STADT UND LAND. The housing market was different to today: supply was far greater than demand. Especially on the outskirts of the city. STADT UND LAND relied on campaigns: The municipal housing company ran a "Move to Hellersdorf" campaign to promote this residential location far away from the noise and hustle and bustle of the city center.

Since 2012, there has been a turnaround to growth, although the debt reduction course has been continued. For the first time in many years, STADT UND LAND increased its residential portfolio through an acquisition. It acquired 341 apartments in four residential complexes in Neukölln and Tempelhof-Schöneberg. In 2013, STADT UND LAND reported a vacancy rate of 2.7 percent. The Berlin housing market has undergone a paradigm shift in recent years. While the so-called noughties were still characterized by a supply surplus, demand for housing now exceeded supply. There was hardly any vacant housing throughout Berlin. STADT UND LAND took an ambitious approach to expanding its portfolio.

STADT UND LAND launched its growth strategy in 2014 with a residential portfolio of 39,370 units. By 2024, the company will have 52,500 apartments, which corresponds to an increase of around 33%. By 2033, this portfolio is to be expanded to 56,254 apartments through acquisitions and new construction. In the planning period from 2024 to 2033, construction is set to begin on a further 3,854 apartments and an investment volume of around EUR 1 billion is planned for the construction and purchase of affordable housing. STADT UND LAND is thus successfully continuing the growth strategy demanded by the shareholder.

STADT UND LAND is also home to a wide variety of people, from technicians and cloud specialists to project managers in new construction. Through their work, around 700 employees make a significant contribution to social urban development and the preservation of liveable neighborhoods. In addition to traditional events such as the "Festival der RIESENDRACHEN" on Tempelhofer Feld or the "Hellersdorfer Balkonkino", the company has also revived the "STADT UND LAND im gesellschaftlichen Dialog" format for its anniversary year. "We have the feeling that the times in society and politics demand that a state-owned company also makes a contribution to public discourse in this area," says Managing Director Ingo Malter.

STADT UND LAND will continue to build new apartments on a considerable scale, keep rents moderate, refurbish and modernize buildings and become climate-neutral and more digital by 2045. In addition to the challenging framework conditions that have been in place for years, there are continuously increasing legal requirements, such as those reflected in the Climate Path, the Building Energy Act and the new Pollutant Ordinance. The costs of implementing these legal obligations should not be underestimated. On the other hand, the company is regulated in terms of income, i.e. rents. "That's why we have to focus our corporate strategy in such a way that we remain economically viable alongside our social mission," says Managing Director Natascha Klimek. Ingo Malter adds: "I believe that STADT UND LAND is on the right track and am optimistic about the future despite all the challenges. The company may be 100 years old, but in many respects it is younger than it has ever been."