A Nordics micro-living and student housing partnership, between Aberdeen Standard Investments (ASI) and Ailon Group, is planning to more than double its units to 5000 over the next three years.
The venture – set up in 2017 to create a scalable platform that would allow ASI to develop micro-living schemes with an experienced partner – currently has over 2,000 units under planning or development.
The majority of the projects, which target students, young professionals and corporate residents, will be completed during 2020-21.
Christian Schjødt-Eriksen, a fund manager of the Aberdeen European Residential Opportunities Fund, which invests in the joint venture, said: “Micro living is a very new concept for the Nordics but, with the popularity of cities in the region only set to increase, it’s one that is here to stay. As such, the platform that we’ve created has real potential to grow.”
“At the same time, the assets we are creating offer institutional investors the opportunity to access stable incomes that have the potential to grow as rental prices increase over the long term.”
Andrew Dawson, founding partner of Ailon, said: “Micro-living has become an integral part of the overall asset allocation for institutional investors in Europe and there is a huge demand for this product in the Nordics.”
Jacob Cronstedt, founding partner of Ailon, said the demand for living small is getting bigger and bigger.
“This is an effect of rising rents in large cities and an increase in autonomous lifestyles of young people. Demand for temporary, furnished apartments for students as well as young professionals has also increased.
“It has also become less important for the new generation of young people to own their home, and easier and more flexible not to have a mortgage, which is a big, long-term commitment.”