Strategic real estate consultancy on social housing by the public sector

The city of Dreieich is planning the implementation of a large social housing project in three construction phases. The first phase of construction is to be used temporarily as a home for refugees. The second and third phases are to be built as social housing.



The BÜRO DR. VOGEL GMBH was commissioned to strategically advise the city of Dreieich which business model would be most suitable to realize this social housing construction project. The advantages and disadvantages of different organizational models for the creation of housing were to be assessed.



First of all, the organizational models to be tested were defined: self-implementation, implementation by a new or a neighboring housing association, realization by private third parties (public-private partnership model) or via an agency agreement.

The strategic recommendation was based on a detailed study of the economic, fiscal and political aspects. For each organization, it was outlined which economic and tax advantages and disadvantages would arise (organization, political control and legal form, land transfer tax, sales tax, income tax). In addition, strategic and procurement law issues were examined: procurement law, possibilities for intervention in the project management and measures for the realization and handling of implementation risks, as well as the suitability for partners in implementation.


Result / Added Value

The analysis of the options from the described perspectives resulted in a differentiated picture. The implementation of the project by the town’s own housing association, or even self-implementation, could prove to be equally smart alternatives in this case, depending on the political priorities.

The added value of our consultation was the identification, evaluation and the relative comparison of all essential aspects. Finally, the outcome was the focus on two implementation models, which could be submitted to the city for a qualified decision.