Online study is only one corona effect. In particular, the important target group of foreign students often stays at home.
If you study online in your old children's room, you don't need a student flat. What is Corona doing to the micro-living industry? The third market report of the Micro-Living Initiative shows it. While rents and occupancy rates are falling again, the transaction volume is reaching pre-Corona levels again.
For the market report, we evaluated the operating data of around 23,500 residential units in 112 apartment buildings nationwide. The most important results: Although rents and occupancy rates have fallen again, professionals are optimistic again and are trading heavily in apartment buildings. It is noticeable that in the past year, residential apartment buildings in the temporary housing segment in particular were traded, while commercial concepts were traded significantly less. In the course of 2021, apartment buildings for around 500 million euros have been traded across Germany so far. By the end of the year, a pre-crisis value of over 1 billion euros is possible again.
On the rental market, the monthly all-in rents of the members of the Initiative Micro-Living average around 489 euros; in the previous market report about half a year ago, this was still around 520 euros. However, the range is very broad at around 261 to 1,793 euros and reflects the great heterogeneity of the apartment buildings in terms of property and location qualities, flat sizes and the respective city and tenant clientele. Compared to autumn 2020, the rents of all members have declined by an average of around 6 %.
On a positive note, the occupancy rate is still quite high at 86 % on average; in the last market report it was still 90 %. This value still underlines the crisis resilience of this asset class. However, the range of occupancy rates per apartment building has widened again. The plea for more creative solutions with regard to parking space keys and the implementation of mobility concepts, which was already discussed in the first and second reports, is now even more acute in view of another significantly lower occupancy rate of parking spaces (59 % on average).
Currently, the challenge is to rent out rather expensive flats and to ensure sufficient occupancy in general. To ensure the highest possible occupancy, many operators are increasing their online marketing efforts. In addition, they sometimes make concessions on lease terms and rent reductions or grant rent-free periods. Until now, this was only known for commercial properties. The Corona crisis has made it more difficult to rent to students than to non-students. In addition, the further away the target group comes, the more difficult it is to rent.
Note: Market reports are published every six months. The third edition can be downloaded from the website of the Micro-Living Initiative (in German language).
Contact person: Felix Embacher, Head of Research & Data Science at bulwiengesa, embacher [at] bulwiengesa.de