The real estate market in the student housing sector is growing continuously. Between 2010 and 2019, for example, the supply of places in student housing complexes by private investors, measured in terms of student numbers in the thirty largest cities in Germany, increased by more than 25 percent. This is according to the December 2019 analysis "Student Housing Germany - The Market at a Glance" by real estate service provider savillis.
Single apartments in particular are very popular among students. Due to the high cost of construction and land, as well as lively competition for attractive properties, according to analyses by savillis, around two-thirds of beds in new construction projects are offered at an all-in rent of over 500 euros. In existing properties, rents are divided roughly equally between all-in rents for above and below 500 euros. A total of 26 percent of the stock of beds from private providers cost more than 600 euros in rent per month.
New construction activity by private investors in the student housing sector will continue to rise this year. Private providers are planning an additional 8,700 student housing places for 2020 and would thus achieve a market share of one-third. Construction of an additional 11,000 housing spaces is planned by public and nonprofit providers. Similarly, in the planning and implementation of housing projects, a large number of student residences are being built in cities outside the metropolitan areas, such as Dortmund and Hanover.
Source: savillis
© fotolia.com
