Saturday, 15 March 2025
Sonar Development has announced the launch of a nationwide residential development programme in Germany using modular timber construction. The initiative is backed by a long-term institutional mandate through Institutional Investment Partners and focuses on metropolitan regions across the country.
The programme will begin with a housing project in Hamburg-Barmbek, where a 2,900-square-meter site has been acquired by a well-known local developer. The plan includes a five-storey courtyard building and a six-storey block along the street, both built to KfW Standard 40 for energy efficiency. The development will offer approximately 80 residential units, with sizes ranging from 40 to 100 square meters, and will include a mix of privately financed and subsidised apartments.
Currently in the planning phase, construction on the Hamburg project is expected to start by the end of 2025, with completion scheduled for early 2027. Sonar Development is working with project planner DIEfabrik and timber module manufacturer Timpla to implement the project. As part of the programme’s broader expansion, the company is actively seeking additional sites for modular timber housing in urban areas. Managing Director Steffen Wittwer highlighted the increasing demand for sustainable housing, particularly in cities, and emphasized Sonar’s commitment to addressing this need. Matthias Gerloff, Managing Partner for Fund Management & Investment Solutions, added that the investment strategy is tailored for a German institutional investor.
Modular timber construction relies on prefabricated modules that are assembled on-site, reducing construction time, waste, and energy consumption. As a renewable material, wood captures CO₂ and helps lower emissions, making it a more sustainable alternative to conventional construction methods. The flexibility and scalability of modular timber housing also allow for efficient residential and commercial development.
In addition to new housing projects, Sonar is focused on densifying existing urban structures and converting office buildings into residential use. A project in Berlin’s Blissestrasse and another in Eschborn demonstrate this approach by repurposing existing buildings to conserve resources and minimize land use.
Sonar currently manages a portfolio of 46 residential properties totaling approximately 60,000 square meters. The company plans to expand its holdings and introduce new institutional investment solutions as part of its long-term residential development strategy.
