ATTIC CONVERSION: IS THE HIDDEN BARGAIN UNDER THE ROOF?

by Anna-Lena Niemann l FAZ

Zeitungsartikel: Liegt das Schnäppchen unterm Dach?, Frankfurter Allgemeine Zeitung 2024

Living individually, with a panoramic view in the city’s prime location: those who purchase an unfinished attic are tempted by attractive entry prices and the prospect of a future penthouse dream. However, the hurdles are substantial.

It’s right there in the real estate portal, black and white, and almost hard to believe: 80 square meters in one of the most desirable locations in Frankfurt for a negotiable price of €299,000. Several hundred kilometers away, in the state capital of Hanover, there are two apartments bundled together—124 square meters—for less than €190,000. Meanwhile, in Berlin-Friedrichshain, a stunning historic building boasts 250 square meters waiting for a new owner. What do the sellers want for it? €399,000. The bargain hunter can hardly believe their eyes.

The prices are so far below what comparable spaces are offered for in the metropolitan areas that there must be a reason. And there is. Officially, it’s called “attic with potential,” which roughly translates to:

Anyone with enough ideas and resources can transform a bare roof structure into a dream apartment with a view tailored to their own vision.

The fact that these raw attic spaces often rise above the residential blocks of the most sought-after neighbourhoods makes the offer even more tempting for many. At least, that’s the impression at first glance. Because turning the space between the rafters and slopes into a penthouse dream is quite a journey.

Perfect Place for Urban Living Experience

Living in attics has undergone an astonishing evolution over the decades. While mansard apartments were once merely simple accommodations for servants and a precariously employed working class, this type of housing has developed into a coveted residence, especially after the turn of the millennium. There is no better way to celebrate urban living than from your own rooftop terrace: free from stomping neighbors above and far removed from the noise of the street.

However, the ascent from servants’ quarters to status symbols is not the whole story. As the call for more new construction grew louder, attics became a beacon of hope in the fight against housing shortages, offering eco-friendly solutions as well. Planners identified the attic landscape as a reservoir of living space that did not require the sealing of any green areas.

A widely noted study by TU Darmstadt calculated in 2019 that around 1.1 million new apartments could be created through extensions and conversions of older residential buildings. The Federal Institute for Research on Building, Urban Affairs, and Spatial Development also sees significant potential lying dormant under Germany’s roofs. However, in a comprehensive publication, the researchers warned that tapping into this potential is costly. If it happens, the supply is likely to grow primarily in the mid to higher price segments.

Hot Summers Diminish Demand for Properties

The expected boom, which could be observed several years after the initial publications, has yet to materialize. Not only do the seemingly bargain prices indicate that demand is not picking up as anticipated – even in prime locations – but some project developers and real estate agents are already promoting their raw attic spaces with discounts and reductions in the double-digit percentage range on various platforms. Why is progress so sluggish?

Each report of another hot summer diminishes the appeal of a home that has already felt sauna-like in previous seasons for many. However, a look into an attic in Berlin-Neukölln provides further insights. The 360 square meters of floor space have not yet been developed, as a private owner intends to create three apartments for themselves and their family. Although a building permit has already been obtained, it is of little use to them. A project developer acquired the permit because the raw spaces can be sold at a higher profit. However, there is often a significant gap between what a developer envisions for the space – loft-style rooms, a few large bedrooms, and huge luxury bathrooms – and what a family actually needs. Once the purchase contract is signed, the approval process begins anew for the builders, this time according to their own plans.

This discrepancy is the first hurdle, explains Stefanie Hünitzsch. The architect and head of the firm ARCH x TECTURE is responsible for the conversions in Neukölln. She is well-versed in Berlin’s historic building roofs, but the legal intricacies present a new challenge every time. Often, an attic conversion leads to a change in the building classification. Even if the floors belong to old Gründerzeit buildings, those looking to move into a previously unused attic must treat the project legally as a new construction.

Many attic conversions encounter issues with the second escape route,

says the architect, as mandated by the Berlin State Building Code in many cases. This can become a deal-breaker, particularly when converting the roof of a back building that is not connected to the front building. Sometimes, even trees in front of the house can obstruct access for the fire department and their rescue ladder.

For the Neukölln attic, Hünitzsch must also present authorities with a plan for a second escape route. This route is to be constructed externally over the roof and lead to another staircase. However, this path cannot be used as an unofficial lookout. Furthermore, the sought-after rooftop terrace in Neukölln is not permitted, while it is allowed in the neighbouring Friedrichshain. The complexities of renovation are heightened by factors like heritage protection and social protection, which can vary significantly from one district to another, as the planner knows from experience.

Because the client has requested larger dormers, the neighbours also have a say in the matter. Dormers, as well as balcony and terrace railings, affect the spacing requirements beyond the allowable limits. In this case, neighbour approval is necessary. However, dormers should not be overlooked when considering living space. Especially when the roof slopes relatively flat into the room, they create a more generous feeling of space and additionally bring natural light into the interior.

"I wouldn't call it a bargain"

Depending on the roof pitch, the actual living space remaining from the advertised square footage can vary.

‘Our raw space in Neukölln has a total area of 360 square meters. However, after conversion, only 220 square meters of living space remain, mainly because we have a relatively low roof pitch,’

explains Hüntzsch. Only areas with a ceiling height of more than two meters can be counted at 100%.

The architect is nonetheless convinced of the potential of attic conversions. Her clients appreciate the central locations and the fact that the site already has access to water, electricity, or gas. Additionally, builders still have many freedoms, despite strict regulations, to transform the top level of the building into a customized home. However, one should not expect to save money by purchasing a raw space.

‘I wouldn’t call it a bargain,’ she says. ‘Buyers face not only construction costs but also significant planning expenses. In addition to architects, energy consultants, fire safety experts, structural engineers, and surveyors are also necessary.’

When all these costs are factored in, builders should anticipate expenses of up to €5,500 per square meter of living space, which reflects new construction costs.

It can take up to two years from the notarization appointment to moving in. Kerstin Huth, chairwoman of the IVD Berlin-Brandenburg real estate association, states that many regulations are obstructive. ‘Potential spaces are not developed because either the building requirements are too stringent or the costs are too high, especially if the roof shape needs significant alterations.’ While more and more federal states are promising to simplify attic conversions in the future, what this will specifically entail remains to be seen, Huth adds.

Installing an elevator can quickly add up to €200,000.

Unpleasant surprises come not only from building regulations. In older buildings, dry rot and beams contaminated with old wood preservatives can pose hidden risks. This might necessitate a complete replacement of the roof structure. Additionally, most rafters need reinforcement during a conversion because the insulation materials and technologies required today won’t fit in the existing roof walls otherwise. For example, so-called cooling ceilings circulate a coolant through the ceilings to maintain comfortable temperatures in the summer. It’s also now standard to install an air-source heat pump on the roof of the top floor, which heats the apartment in winter and cools it in summer.

Another major investment is the elevator. ‘According to property management experience, installing an elevator is crucial,’ says association representative Huth. It can cost between €150,000 and €200,000 – if approved. In theory, attic buyers shouldn’t have to cover the full cost themselves, as the entire building community benefits from the installation and may agree to it. However, in practice, owners often can’t reach a consensus. Those who forgo the elevator might at least feel rewarded by earning their stunning view with every step they take.

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