Short-term accommodation remains a popular choice for investors
Socio-demographic change and increasingly flexible working practices are reflected more clearly in the emerging micro-living asset class than in virtually any other housing trend. Nonetheless, the segment is not immune to the effects of the coronavirus pandemic. Our latest survey provides insights into the impact of the virus on the short-term accommodation investment market in Germany.
Temporary living is much more than a passing trend. It’s a response to socio-demographic changes and greater flexibility in the worlds of work and education. However, this segment’s target groups – young professionals, students, long-distance commuters and project-based staff – are currently seeing their lives disrupted by the pandemic. But the underlying long-term trend remains intact, though, as our recent survey of institutional investors shows.
In October 2020, in conjunction with Adina Apartment Hotels and Savills, we asked “To what extent will you invest in temporary living in the future?” The results show that demand is and remains stable. There are no signs that investors are abandoning this asset class.
For our part, we remain active in the micro-living sector with its student apartments and micro-apartments, investing both in existing properties and in selected development projects in urban locations. This commitment is reflected in our dedicated team of experts, comprising investment managers, asset managers, portfolio managers and fund managers. Do you have any relevant investment projects? If so, we would love to hear from you.
Our micro-living investment criteria
Small-scale living in urban locations
Please see below for the markets we are looking to invest in.
Got something that might interest us? Please contact us, we look forward to hearing from you.
- Main location: Germany
- Focus locations: Austria, Netherlands, France, Ireland
- Additional countries: Spain, Portugal, Belgium, Luxembourg, United Kingdom, Poland, Switzerland
- Macro-location: Buoyant urban centres within economically strong European metropolitan areas; university towns
- Micro-location: City-centre locations, good public transport connections, good infrastructure (e.g. local amenities and leisure facilities) and/or proximity to universities
- Property types: Student and micro apartment complexes with or without operator concepts and master leases, with commercial concepts (e.g. serviced apartments/aparthotels) also possible, individual investments from approximately EUR 15 million
- Property structure: Standardised complexes, small residential units, furnished + own bathroom and kitchen, communal and service areas for use by tenants, and co-living concepts
- Type of use: Residential use for short and medium-term lets (approx. 6 months to a few years) for the target groups young professionals, commuters, students as well as young households or long-term serviced apartments/aparthotels
Student Housing Study 2019
Münster beats Amsterdam – where are the best investment prospects for student housing?
The study focuses on the student housing sector in 61 German cities and four other major European cities. It identifies the cities where conditions are particularly favourable for development and investment, as well as those where market demand appears to be already fully met.
Our offering for institutional investors
Urban Living Nr. 1 – special fund focusing on micro-living
Launched in April 2017, this special fund focuses exclusively on the fast-growing micro-living asset class, offering an attractive risk/return profile for institutional investment. The fund invests in newer existing properties and in selected development projects in Germany and other European countries.
If you have any questions about this special fund or about other investment options, please contact Bastian Pütz.
Selected Urban Living Nr. 1 properties:
Co-living concept Living House Berlin
The unique feature of this property is its comprehensive digitisation: the REOS (Real Estate Operating System) platform allows digital implementation of all relevant processes, from building and tenant management to Administration.
Milestone Graz – a modern micro apartment complex for students in Graz, Austria
Consisting of 378 residential units, this micro apartment complex is let on a long-term lease to Milestone, one of the most experienced providers of private student accommodation in Austria. It offers high-spec fittings and furnishings which have been carefully selected to make efficient use of space, with a strict focus on single Apartments.
How to contact us
Do you have an investment opportunity that might interest us? Please contact us by phone or e-mail. We look forward to hearing from you.
Henrik von Bothmer
Functional Head of Operated Living
Tel. +49 40 34919-4153
Mobile +49 174 90 52 094
Friedrich Georg Warmbold
Head of Investment Management Residential
Tel. +49 40 34919-4717
Mobile +49 151 44 04 48 59