Micro-Living - market for micro-apartments is growing

29.07.2018 10:07

In Germany, more and more furnished mini apartments are sold. The prices are "salted" is claimed - but there is no shortage of demand. Why is that?

Objects have been created for some time in all the major cities of the republic - but also in booming middle-class cities. Micro apartments are considered one of the hottest trends in the German real estate market. The mini apartments are often no bigger than a hotel room.

Discussed are now the rental prices and purchase prices. If one now relates the rents or purchase prices to the usual reference square meters, then this is correct with the "salted". However, that's not the right approach. The focus here is basically on the total rent and the total purchase price per apartment and not on the m² comparison. A comparison with classic condominiums is not appropriate.

For one thing, the apartments are mostly furnished and can therefore be occupied directly. Among other things, the higher costs for the measure and the fixtures and furniture must be considered.

On the other hand, for investors - of great importance - the investment amount remains manageable.

In Kaufering and in Landsberg projects are currently in progress or in planning. Although both projects are so-called micro-living, the objectives are different. In Kaufering is a building project with various uses such as student housing, apartments for employees of local companies, job seekers, commuters etc. In Landsberg it is about the social thought - cheaper housing for carers. The new asset class "Micro-Living" thus has its basis from a variety of perspectives.

The market for micro-apartments is booming as investors seek to benefit not only from low lending rates but also from social trends. Germany's cities are growing fast, living space is correspondingly scarce and expensive. There are as many single households in Germany as never before: in the meantime, four out of ten households have only one person living there, and in some cities the rate is even higher. There are so many students and single households in Germany as never before. They need living space, but usually have a limited budget.

Whether the new asset class is a so-called "sustainable" investment will become apparent. However, an end to the boom in micro apartments is not yet in sight. So far, the demand for one-room apartments in the largest German cities is much greater than the supply.

(Source: http://landsberger-monatszeitung.de/)

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