Even if it is not advisable to sit together in close quarters at the moment, communal areas are an important part of student housing.
For the second market report of the Initiative Micro-Living, we evaluated the operating data of around 23,600 residential units in 115 apartment buildings nationwide. This shows that the segment is surprisingly crisis-resistant with an average occupancy rate of 90%.
Despite the still high occupancy rate, however, it is also noticeable that the range of occupancy rates per apartment building has become significantly wider. Not every flat concept at every location comes through the crisis well. Many apartment buildings that only have single flats have a high, even slightly increased occupancy rate, especially in the smaller C and D cities. In contrast, in the seven large A-cities and the B-cities, more flats are now without tenants than in the spring. A- and B-cities have the largest share of apartment buildings with around 67 %.
Monthly all-in rents average around 520 euros. However, the range is enormous: the furnished flats cost between around 261 and 1,289 euros, reflecting the great heterogeneity of the apartment buildings in terms of property and location qualities, sizes and the respective city and tenant clientele. Compared to spring 2020, the rents of all founding members have fallen by an average of around 6 %. Students are a significant target group for flats, accounting for around 45 % of all tenants, but they are not the only one.
In fact, some apartment buildings do not have a single student as a tenant. Compared to Spring 2020, the proportion of students in the founding members' flats has declined somewhat. This is because the typical clientele are students who are new to a city, also from abroad. For many operators, it is currently easier to rent to non-students.
A survey among the 15 members on the effects of the Corona crisis showed that the challenges are to be interpreted more selectively than across the board. A very positive finding is that all companies that developed and invested in flat projects before the Corona crisis are still doing so. Most of them do not expect "business as pre-COVID" until the second half of 2021, but no one is fundamentally questioning the business model as a result of the crisis.
About the Initiative Micro-Living (IML)
The current members of the IML are berlinovo, the Bürgermeister-Reuter-Stiftung, Commerz Real, CORESTATE, Cube Life, DEMIWO, GBI, HanseMerkur Grundvermögen, i Live, International Campus, KRAMS Immobilien, Pro Urban, Staytoo, Union Investment and VEGIS Immobilien. The Bundesverband Micro-Living is also listed as an associate member. All professional owners, operators and managers of residential apartment buildings can join.
Note: Market reports are published every six months. The second edition can be downloaded from the website of the Initiative Micro-Living (in German language).
Contact person: Felix Embacher, Head of Micro-Living at bulwiengesa, embacher [at] bulwiengesa.de