According to forecasts by experts from the housing industry, offerings from the "micro-apartments" asset class will continue to establish themselves on the housing market and grow. The real estate consultant BNP Paribas Real Estate, for example, cites a number of reasons for the promising forecasts. First and foremost, micro-apartments consistently offer stable occupancy rates. After all, even in the difficult Corona pandemic, occupancy figures have hardly changed. This distinguishes micro-apartments from the so-called serviced apartments and hotels, which suffered from a sharp drop in occupancy figures as a result of the Corona pandemic.
According to experts, one of the reasons for the stable occupancy of micro-apartments is the shortage of housing in major cities, especially in central locations. Here, modern and efficient living space is in short supply. Thus, residents of micro-apartments prefer to pay a higher housing rent and keep their micro-apartment even when they are absent, rather than take the risk of embarking on a lengthy search for a new apartment when the pandemic restrictions are lifted again. Because of the strong sense of community that is characteristic of this asset class, many residents feel a desire to stay, increasing the emotional attachment to the micro-home.
Another reason why demand is expected to remain high after the Corona pandemic is immigration from other, especially European, countries. Experts suspect an influx of workers from abroad, for example from southern Europe, which was hard hit by the Corona pandemic, or with workers from the Anglo-Saxon region due to Brexit. As rents in many major European cities such as Barcelona, London or Madrid are significantly higher than in Germany, European workers are also prepared to spend more money on rents. In addition, the asset class will continue to attract the interest of investors in the future due to a low risk profile.
Source: BNP
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