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In this paper, the benefits of very high resolution interferometric SAR (IfSAR) imaging of urban areas are demonstrated and evaluated. It is shown that this technique allows to analyse layover situations, which are common in such environments. For this reason, very high resolution IfSAR will form an important basis for future radar based urban analysis. The results of this paper are based on very high resolution IfSAR images (down to sub-decimeter resolution) acquired over urban areas using PAMIR, the airborne X-band SAR/GMTI demonstrator of FGAN-FHR.