00:00He could have made millions. Instead, this 89-year-old gave it all the way to fight Munich's housing crisis.
00:06At a time when housing is becoming increasingly unaffordable, it's a decision that is turning heads.
00:13Otto Gugger was born in Munich. In the very same house he has just given away.
00:17He's decided to donate his 3,000 square meter property instead of selling it for profit.
00:22In one of Europe's most expensive cities, the land could easily have been turned into luxury apartments.
00:27But Gugger chose a different path.
00:31I don't have children, and neither does my sister.
00:36So it just seemed the obvious thing to do, to pass it on and put it to good use.
00:43My father bought the plot for just 22 fennigs per square foot.
00:49It's impossible to imagine that today.
00:54Instead of cashing in, Gugger gave the land to the non-profit foundation, The Heim im Vörtel.
00:59The plan? Build around 20 affordable apartments designed for people who are being pushed out of the city.
01:05The foundation already manages several apartment buildings and flats.
01:09Some of them donated through wills and currently rents out around 60 homes in Munich and the surrounding area at
01:15affordable prices.
01:17Tenants are selected on a case-by-case basis.
01:20And now the new plot by Otto Gugger is being added.
01:23Part of the agreement with the foundation is that the Gugger's have a right to continue to live in their
01:27family home for the rest of their lives.
01:30Munich is already one of the most expensive cities in Europe.
01:34Renting a furnished studio costs close to 1,500 euros a month.
01:39That's nearly double what you'd pay in some other European capitals, for example in Athens.
01:44And the situation is getting worse.
01:47Germany is facing a major housing shortage.
01:50Around 1.4 million homes are missing across the country.
01:54But construction isn't keeping up.
01:56In 2025, only just over 200,000 apartments were built.
02:00The lowest level in more than a decade.
02:02Rising costs, stalled projects and expensive land are slowing everything down.
02:09Ultimately, one of the factors driving up rents is a shortage of supply.
02:13At the same time, demand is high and construction costs are extremely high.
02:17This combination makes things very difficult and drives prices up.
02:21The consequences are visible everywhere.
02:23Finding a home has become a struggle in big cities like Munich.
02:30Rents in Munich are incredibly high and that simply limits your flexibility.
02:35Moving from a larger flat to a smaller flat or to a different part of the city is simply impossible.
02:44Without the right contacts helping me, I would have never been able to find a flat in that area.
02:51For many, especially migrants, young people and lower-income families, access to housing often depends on luck or connections.
02:58And those without either are being pushed further out.
03:01That's what Otto Gugger wants to change.
03:04At least on his land.
03:10The plot will be for people who are struggling in life, whether due to illness, financial circumstances or other situations.
03:17They should have the chance to get a foot on it.
03:19They should have the chance to get a foot on it.
03:21I think this will be a real success.
03:29If the people who move in are open to building a sense of community, I'm sure it will be rewarding
03:34for me as well.
03:37Otto Gugger plans to transform his property into a multi-generational housing project,
03:42bringing together students, low-income residents and other adults in assisted living under one roof.
03:48At this house, and on the plot right next to it, construction could begin as early as next year.
03:54The first residents are expected to move in by 2028.
03:58In a market driven by profit, Otto Gugger's decision is a reminder.
04:02Housing shouldn't just be an investment, but rather a place to live.
Comments