Student living was yesterday, Temporary living is today

20.09.2018 15:59

The market for temporary housing is currently experiencing rapid development in Germany. In 2017, the transaction volume was over € 1.9 billion - over 12% of total residential transaction volume. Savills's analysis examines recent developments in this niche market and outlines supply and demand. Savills focuses on residential concepts in this analysis.

The results in brief:

• In 2017, 12% of the total residential transaction volume was spent on temporary housing
• High demand means that more and more providers are entering the market
• Operators are increasingly turning from specialists to generalists

While, until recently, there has been much talk about a student housing market, student housing is now increasingly seen as a sub-segment of a larger niche market. It can be observed, for example, that student housing providers are increasingly looking at other interested parties as well. These are, in particular, young professionals, project professionals and expatriates, as well as long-distance commuters.

One reason for the expansion of the target group is likely to be that even young professionals often can not find a suitable offer on the free housing market and micro apartments are the preferred product for some of you. The growing competition in the market for student apartments in the upper price segment could also help providers expand their target group. Looking at the different target groups, the main common feature is that they only need housing for a period of time, the end of which is already foreseeable. Because the living space is needed only temporarily, they should have a small footprint and a furniture wish. To continue speaking only of a student housing market is, according to Savills, no longer up-to-date. Rather, the term temporary living is best suited to the character of the market. In addition to small furnished residential units, the temporary housing developments often have various communal facilities such as leisure and work rooms or communal kitchens. This outsourcing of uses in the semi-public space is not only due to space reasons, but also in terms of creating a community. The latter point could be a further added value for many of the buyers compared to the offers on the classic housing market.

Due to the high demand it is to be expected that further suppliers will enter the market. The ten largest operators alone currently have a stock of around 24,600 beds in Germany and are building or planning 13,000 more beds. The Temporary Housing operator divides Savills into specialists and generalists. Specialists focus on a specific target group within the segment. Mostly her focus is on students. Generalists, on the other hand, target different audiences and usually have different brands. "Almost all generalists were originally students of student housing. Due to the high demand, however, they have extended their offer to a larger clientele. Expected to be more specialists to generalists, "said Matti Schenk, Senior Consultant Research at Savills. "Since the operator platforms are expansive business models that can operate all the more efficiently the larger their managed portfolios are, it can be assumed that the large platforms for temporary housing will continue to grow in the next few years," Schenk continues.

Sourche: DEAL-Magazin

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