Increase your sales with student residences
According to an analysis by Savills, the market for student residences is booming in Germany. There are as many students as never before. The current offer of affordable living space in Germany is not meeting the high number of students. In 2016, 1.1 million student apartments stood against 2.7 million students – that’s a gap of 1.6 million apartments!
“The shortage of affordable apartments leads to increasing rents. That makes the market attractive, especially for private investors. In 2016, investment in student residences almost reached a billion Euro – that’s more than the sum of all transactions between 2009 and 2015. In 2017 the sales of student apartments will cross the one billion euro border.” Michael Gail, deputy director of Investment Savills Germany.
Private, new build student residences usually have an average size of 200 apartments. 150 units are mostly the minimum size for many operators. The majority are single apartments. Followed by two bedroom apartments. The typical size of an apartment is between 18 and 22 qm and comes fully furnished – including a private bathroom and kitchen.
After the BKI-Baukostenatlas the construction cost (without expenses for the land) is on average between 1,810 and 2,780 Euro.
Example: Student residence Campus Süd, Erlangen
|Construction costs||34 million euro|
|Apartment sizes||19.3 – 25 square meters|
Example: Student residence Briachstraße, Weingarten
|Construction costs||8.4 million euro|
|Apartment sizes||13 – 22 square meters|
Example: Student residences Campus Westend, Frankfurt am Main
|Construction costs||32.5 million euro|
|Apartment sizes||15 – 25 square meters|
Who builds student residences?
With roundabout 38,500 beds and 24,500 beds under construction private investors are changing the market of student residences. The focus is on the building of individual apartments in the upper price segment.
|Construction / Planning||Beds|
|Student Unions/ Churches/ Foundations||4,850|
Student residences under construction/in planning in 2017
While investors with regular residential housings can generate a rental income between 4.4 and 4.9 percent, student accommodations are expected to drop by as much as 5.9 percent. That’s the reason why private Investors currently dominate the market of student residences.
Building Radar has listed the largest private provider of student residences in Germany:
In addition to students, there are more target groups who are interested in that kind of apartments. Young professionals, commuters and project workers are also looking for cheap and functional living space.
„Ten years ago there were less than 10,000 accommodations for students. With the current new construction projects, the offer in private residential facilities for students will increase to at least 63,000 student accommodation” Matti Schenk, Senior Consultant Research of Savills Germany.
Participate in the market of student residences!
To increase your sales with student residences it is advisable to contact with planners and architects as early as possible. The Building Radar Platform offers the opportunity to learn about planned construction projects already at the beginning of the planning phase.
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