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Briefing note

Student housing - Part 4: The Change

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Student housing - Part 4: The Change

In our previous briefing notes of this series, we highlighted the lack of affordable apartments for students, particularly in the large (university) cities, owing to housing markets becoming significantly more strained. Against this background, private investors began developing student accommodation several years ago. This has resulted in the creation of some 15,000 places in the 30 largest university cities alone over the last five years, while a further 16,000 places are under construction or in planning. That is good news for students. For the first time since the 1960s, when student associations (‘Studentenwerke’) started to build halls of residence on a large scale, there are once again apartments being built in Germany specifically tailored to the requirements of students. Since almost all private developers and investors to date have concentrated on students with above-average income as a target group, the growth in supply until now has been almost exclusively in the rental segment starting from €450 per month. With a current supply ratio of 7% (existing building stock) or 15% (including ongoing developments), there is undoubtedly further growth potential in the high-price segment.q

Source : Savills

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Keywords : Savills