Small is the new big: micro apartments are changing the industry

Micro apartments are booked most frequently, attract attractive prices and are also the most profitable for the operators due to the high real estate prices in the metropolises. This is a clear trend in the fast-growing segment of serviced apartments. Accordingly, the micro apartment offers are also increasing. According to Apartmentservice's Market Report 2018, Mikroapartments currently make up eight percent of the total German market in terms of units - twice as much as in 2017. "An end to the micro-flagpole is currently not foreseeable," estimates Anett Gregorius, founder and owner from Apartmentservice, a. "It will become clear to what extent apartment living in a small space will decisively change the overall offer on the market."

"Micro apartments, which are less than 25 m² one-bedroom units, currently represent the largest share of serviced apartments in an object. The larger the object, the higher the number of micro units. According to the Market Report 2018 by Apartmentservice, micro-apartments make up eight percent of Germany's total market in absolute terms - compared to four percent in the previous year. "For many developers and operators a worthwhile way, because the micro-apartment is currently the most in demand guests Serviced apartment type - especially because companies that accommodate their employees want to save costs, and because operators with a view to the high real estate prices and scarce Living space offers can act here most cost-effective, "emphasizes Anett Gregorius. In addition to the classic apartment buildings and the Apart (ment) hotels, micro apartments have quickly established themselves as the third type of business in the segment.

For operators like the budget pioneer in the segment, SMARTments business, this is water on the expansion mills. Of the current six houses, only three are in the capital. "Berlin has a great appeal for young people starting their careers. The housing market has become so tight here in recent years that this group of people in particular is facing a major challenge to find affordable accommodation for a limited period of time, "explains Michael Blind, Managing Director SMARTments business Betriebsgesellschaft mbH. Therefore, he sees in Berlin still significant potential for more houses with the brand-typical micro solutions.

The Europe-wide long-stay provider VISIONAPARTMENTS also notes a clear demand for small units, even if this is not their own product range. "If you live in an apartment for a month, you may not need large areas," says CEO Anja Graf in an interview with Apartmentservice, adding: "In any case, our customers want them to live centrally and practically, and to do so Serviced Apartment is cheaper than a hotel. "

Anett Gregorius summarizes the general industry tenor: "Micro apartments have become established in the serviced apartment sector, and many agree on the market. However, there is also the conviction that the concept will only be relevant in small areas if the apartments remain comfortable and are not reduced to the bed like a hotel. The absence of the kitchen in the apartment as well as the sinking of the average rates by the cheaper offers, lead to discussions, what exactly the core elements in a serviced apartment remain. "

In the future, will the microtender be at the expense of the original living, cooking and sleeping offer of Serviced Apartments? Does the offer for real longstay decline? And in what form do the guests really want to "micro-live", according to Apartmentservice's current guest survey?

These and other questions will be topics on the SO! APART 2018, the most important symposium for the serviced apartment market in the German-speaking area. Organized by Apartmentservice, about 200 investors, project developers, operators and serviced apartment experts will come together in the newly opened Felix Suites in Leipzig on November 14 and 15, 2018 in Leipzig for up-to-date market lectures, discussion panels and lively exchange forums. In addition, the best apartment concepts 2018 in different categories are chosen. The SO! APART 2018 is supported by the renowned company PRO URBAN AG in an exclusive partnership.

Sourche: DEAL-Magazin