The German student apartment market is ripe for investment due a shortage of student halls places and the end of national military service, which is expected to boost student numbers, according to research by international real estate services firm Savills.
The German student apartment market is ripe for investment due a shortage of student halls places and the end of national military service, which is expected to boost student numbers, according to research by international real estate services firm Savills.
Savills says the number of students in Germany has increased by some 18% to more than 2.1 million in the past 10 years but only 181,000 places have been made available in publicly-funded halls of residence. Savills' researchers looked at 51 German cities and say Darmstadt, Munich and Hamburg offer the lowest risk for investors, while Halle (Saale), Braunschweig and Magdeburg are have the highest risk.
'There is some evidence that both the high-risk and low-risk locations include markets that are under-valued and investors would be wise to take a closer look at these,' said Matthias Pink, head of Savills Research in Germany. 'The vast majority of students prefer a rental apartment, which underlines the latent potential for private investors.'
