Prop.com: The digital transformation of German living

As the sun sets over the Palais des Festivals on the second day of MIPIM 2026, the mood in the property world has shifted from "survival" to "action".

Paul Hohenstatt

Leading this charge is Paul Hohenstatt, CIO of Prop.com, who sat down with CRE Media Europe to discuss how a "tech-first" approach is unlocking value in Europe’s most supply-constrained markets. For Hohenstatt, the story of 2026 is one of structural undersupply meeting aggressive digital optimisation.

Germany is currently facing a chronic housing deficit. With a requirement for 400,000 new units per annum and supply hovering around 100,000, Prop.com has identified a lucrative niche in micro-living and flexible housing.

"There is huge demand in Europe for living opportunities, especially in Germany... people are looking for flexible furnished space. All the micro-living concepts are getting some interest from investors now—residential, commercial, and co-living."

Prop.com recently demonstrated this strategy by acquiring a 315-unit micro-living asset in Trier, turning a vacated student union building into a high-yielding, ESG-compliant asset.

One of the most compelling aspects of the 2026 German market is the "subsidy landscape". Hohenstatt highlights the power of KfW and BAFA subsidies, which are driving the transformation of older "brown" stock into modern, "Paris-compliant" housing.

By focusing on "energetic uplifts", Prop.com prepares assets for institutional buyers who are now mandate-bound to only purchase ESG-ready products. The firm currently has a 3,000-unit portfolio pipeline in various stages of this transformation process.

While 2026 sees Prop.com focusing heavily on its home turf, the firm remains opportunistic across Europe. Recently acquired a distressed mixed-use development in Luxembourg at a prime spot. The company is also exploring assets in Portugal and has even looked at hospitality opportunities in London.

At the same time, Prop.com is moving toward a future where it functions more like a software company than a traditional landlord. Reflecting on the atmosphere in Cannes this year, Hohenstatt notes a palpable change in sentiment.

"It really feels like something is starting now. The last three years it was always 'survive till 25'...so when does it start again?  But this question is barely asked anymore. Most of the people are focusing on tangible transactions."

Branislav Pekic