Earlier quoted context omitted.
Have you been in the area? There's no single family housing there at all for quite some distance (I'd say a few kilometers in each direction at least). It's mostly densely built-up with 3-5 story apartment buildings.
3-5 story isn't very tall. Tear them down and go taller.
Plus, Berlin likes to protect their heritage; often tearing down and rebuilding whole neighborhoods turned out to be a very bad idea.