Expanding into The Netherlands


International Campus AG expands into The Netherlands 

Dear rea­ders, 

Now it’s offi­ci­al. The num­ber of new stu­dents will remain con-stant­ly high. The Stan­ding Con­fe­rence of the Minis­ters of Edu­ca-tion and Cul­tu­ral Affairs (KMK) has con­sider­a­b­ly rai­sed its fore­casts for the num­ber of new stu­dents. It now assu­mes – as have many obser­vers for years – that by 2020 around half a mil-lion young peo­p­le per year will begin uni­ver­si­ty. For­t­u­na­te­ly, public stu­dent grants (BaföG) will also be rai­sed to con­tem­po-rary levels. 

The per­cep­ti­on and accep­tance of the asset class is gro­wing around the world. The inter­na­tio­nal con­sul­tancy group Savills clai­med recent­ly: “Stu­dent accom­mo­da­ti­on beca­me a suc­cessful and important asset class during the glo­bal finan­cial cri­sis.” Against the back­drop of ongo­ing low inte­rest rates, invest­ment alter­na­ti­ves which offer reasonable returns have beco­me more popu­lar than ever with insti­tu­tio­nal inves­tors. 

The last few months have also been exci­ting for Inter­na­tio­nal Cam­pus. We have streng­the­ned our team, moved to a new of-fice and ven­tu­red into the Dutch mar­ket, whe­re the­re will be a shorta­ge of some 28,000 stu­dent apart­ments by 2020. Tog­e­ther with DUWO, the Dutch mar­ket lea­der for stu­dent accom­mo­da-tion, we will see more than 2,200 stu­dent apart­ments com­plet-ed in the next few years as inves­tor and co-deve­lo­per. In this IC news­let­ter, we will take a look at cur­rent trends and the resi­den-tial mar­ket in Ber­lin. We will also intro­du­ce our new­ly estab-lished cor­po­ra­te con­sul­tancy firm “Con­sul­ting Cum Lau­de”. 

Horst Lie­der 

CEO of Inter­na­tio­nal Cam­pus AG 

Student living: current trends 

Fore­casts adjus­ted 

At the begin­ning of July 2014, the Stan­ding Con­fe­rence of the Minis-ters of Edu­ca­ti­on and Cul­tu­ral Af-fairs (KMK) con­sider­a­b­ly rai­sed its fore­cast for the num­ber of new stu­dents – a well-over­due cor­rec-tion, accor­ding to many obser­vers. The KMK now assu­mes that some 500,000 young peo­p­le will begin uni­ver­si­ty in the next few years. The num­ber of stu­dents will even reach more 465,000 in 2025. So far seve­ral fac­tors have been un-dere­sti­ma­ted by offi­ci­als. For one, the tem­po­ra­ry dou­ble volu­me of A‑level stu­dents lea­ving school due to edu­ca­tio­nal reforms will also have an impact in the medi-um term, plus the­re is also a grea­ter influx from abroad. The num­ber of for­eign stu­dents at Ger­man uni­ver­si­ties, high schools and tech­ni­cal col­leges is expec­ted to rise rapidly to 300,000 by 2020. While stu­dent fees in the UK, for exam­p­le, can amount to up to EUR 18,000 per aca­de­mic year, Ger-many has the advan­ta­ge of having no stu­dent fees. 

Trend towards more edu­ca­ti­on 

In 2012 almost 54 per cent of school lea­vers had hig­her edu­ca-tion ent­rance qua­li­fi­ca­ti­ons – in 2003 it was only 39 per cent. Dur-ing this peri­od the per­cen­ta­ge of new stu­dents rose from almost 40 to more than 61 per cent. Ac-cor­ding to sur­veys, 77 per cent of A‑level stu­dents plan to go to uni-ver­si­ty after finis­hing school. Sin­ce 2011 the per­cen­ta­ge of new stu-dents has con­stant­ly been abo­ve 50 per cent. But while the num­ber of stu­dents has increased by 25 per cent in the last 12 years, the num­ber of rooms in resi­denc-es has hard­ly grown by more than 4 per cent. 

Demand exceeds small-scale 

resi­den­ti­al cosns­truc­tion 

Whe­ther it is a shared apart­ment, a place in stu­dent accom­mo­da­ti­on or a sin­gle apart­ment, small-sca­le resi­den­ti­al accom­mo­da­ti­on is rare, and demand is sub­se­quent­ly high. The­re con­ti­nues to be an acu­te shorta­ge of housing in many me-tro­po­li­ses and uni­ver­si­ty towns. Accor­ding to the recent fifth re-port by Allens­bach Rese­arch Ins­ti-tute and Reemts­ma Foun­da­ti­on entit­led “Stu­dy con­di­ti­ons 2014”, 72 per cent of all new stu­dents in Ger­ma­ny expe­ri­en­ced “dif­fi­cul­ty” or “gre­at dif­fi­cul­ty” in fin­ding ap-pro­pria­te accom­mo­da­ti­on. While con­s­truc­tion is once again incre­as-ing in Ger­ma­ny, only very few stu-dents are actual­ly bene­fiting from this. 

Moun­ting com­pe­ti­ti­on 

As part of the stron­ger migra­ti­on to cities and metro­po­li­tan are­as, the rising share of peo­p­le living alo­ne and incre­asing mobi­li­ty, mi-cro apart­ments are beco­ming a huge­ly sought-after com­mo­di­ty. Post-gra­dua­tes, com­mut­ers, sin-gles and stu­dents are all loo­king for the same type of small-sca­le resi­den­ti­al accom­mo­da­ti­on. Ac-cor­ding to the fifth Allens­bach re-port, appro­pria­te accom­mo­da­ti­on is “extre­me­ly important” to 27 per cent of stu­dents. For 30 per cent of all uni­ver­si­ty stu­dents, accom-moda­ti­on was a fac­tor in deci­ding whe­re to stu­dy. A recent report by the inter­na­tio­nal con­sul­tancy com­pa­ny Roland Ber­ger con­firm­ed the trend: by 2025 – over the next ele­ven years – the num­ber of house­holds in Ger­ma­ny will in-crease by around 2 per­cent. With some 41 mil­li­on house­holds, this cor­re­sponds to an increase of more than 800,000 house­holds. This is a clear indi­ca­ti­on that one- and two-room apart­ments will be par­ti­cu­lar­ly sought after in Ger-many.

In focus: Berlin 

Stu­dent accom­mo­da­ti­on 

Mar­ket in the capi­tal 

Ber­lin is very popu­lar among stu­dents. A total of 164,728 young peo­p­le are en-rol­led at the city’s four uni­ver­si-ties, three art schools, seven tech­ni­cal col­leges and seve­ral dozen pri­va­te uni­ver­si­ties. Three of the four uni­ver­si­ties are eli­te uni­ver­si­ties. Around 16 per cent of stu­dents are from abroad. Of the stu­dents in Ber­lin who took part in the fifth Allens­bach re-port “Stu­dy con­di­ti­ons 2014”, 82 per cent expe­ri­en­ced “dif­fi-cul­ties” or “gre­at dif­fi­cul­ties” in fin­ding accom­mo­da­ti­on. The­re are a total of 9,411 places in stu­dent accom­mo­da­ti­on, which cor­re­sponds to an accom­mo­da-tion ratio of 6 per cent. The res-iden­ti­al vacan­cy rate in Ber­lin stands at just around 2 per cent. Rents have accor­din­gly risen: by 36.5 per cent on avera­ge from 2008 to 2013. Demand for ac-com­mo­da­ti­on in the city cent­re within the S‑Bahn ring is par­ti­cu-lar­ly high. Of all Ber­lin house-holds, 54 per cent are sin­gle-per­son house­holds. 

“The metro­po­lis is awa­ke­ning“ 

The eco­no­mic fore­casts for Ber-lin are also posi­ti­ve. A recent stu­dy by PWC ranks Ber­lin at num­ber 11 of the world’s 30 most important metro­po­li­tan are­as. More than 200,000 peo-ple work in rese­arch, and more than 200,000 work in the arts and crea­ti­ve indus­try. Gro­wing eco­no­mic and purcha­sing pow-er, a high qua­li­ty of life and ex-cel­lent infra­struc­tu­re attract around 50,000 peo­p­le – most of them young – each year. Around 30 mil­li­on over­night stays by tou­rists are expec­ted in 2014.

Three questions for Roman Diehl about Consulting Cum Laude: 

Why did Inter­na­tio­nal Cam­pus estab­lish “Con­sul­ting Cum Lau­de” (CCL)? 

Based on its clo­se pro­xi­mi­ty to the stu­dent tar­get group, Inter-natio­nal Cam­pus will ver­ti­cal­ly diver­si­fy its busi­ness model with the cor­po­ra­te con­sul­ting firm “Con­sul­ting Cum Lau­de”: from stu­dent accom­mo­da­ti­on to con-sul­ting and mar­ket rese­arch. It is beco­ming incre­asing­ly evi­dent that stu­dents and gra­dua­tes are a valuable resour­ce for the who­le eco­no­my, both as cus-tomers and employees. We want to exploit this. 

For whom is this con­sul­ting plat­form attrac­ti­ve? 

Con­sul­ting Cum Lau­de is not on-ly attrac­ti­ve for the real estate indus­try. We the­r­e­fo­re offer our ser­vices to com­pa­nies of all sec-tors and sizes that want to make them­sel­ves rea­dy for the “batt­le for talent” and seek direct ac-cess to the 17-to-32-year-old cus­to­mers of today. 

What is spe­cial about CCL and when does it start? 

“Gene­ra­ti­on Y” thinks dif­fe­rent-ly than pre­vious gene­ra­ti­ons, which is obvious con­side­ring the digi­ta­li­sa­ti­on of (social) life. We have the­r­e­fo­re opted for an in-nova­ti­ve con­sul­ting approach: based on an exten­si­ve know­ledge data­ba­se, expe­ri-enced manage­ment con­sul­tants work clo­se­ly with crea­ti­ve stu-dents to deve­lop effec­ti­ve solu-tions, for exam­p­le in “employ­er bran­ding”. CCL starts in mid-August. Demand from com­pa-nies is huge! 


Euro­pean mobi­li­ty pro­gram­mes to beco­me “Eras­mus+” 

The Euro­pean Uni­on is com­bin-ing its mobi­li­ty pro­gram­mes for stu­dents and app­ren­ti­ces for all 28 mem­ber sta­tes under one roof and is incre­asing the bud­get con­sider­a­b­ly. By 2020 the EU expects the exch­an­ge pro-gram­me to cost EUR 14.8 bil­li­on. The pro­gram­mes Eras­mus, Co-meni­us, Leo­nar­do da Vin­ci and Jugend in Akti­on will beco­me “Eras­mus+”. 

Record num­ber of Ger­man pupils want to take A‑levels 

Accor­ding to the report “Jugend Leben” by the Uni­ver­si­ty of Gies-sen, 77 per cent of the 6,000 pu-pils sur­vey­ed bet­ween the ages of 10 and 18 want to take A‑levels. 

Bache­lor insuf­fi­ci­ent 

Accor­ding to the fifth Allens­bach report, 61 per cent of stu­dents want to earn a Master’s degree after their Bachelor’s degree. Only 27 per cent say a Bachelor’s degree suf­fi­ci­ent­ly pre­pa­res them for working life. The lim-ited accep­tance of the Bache-lor’s degree and bet­ter ear­nings and care­er opti­ons are the main reasons cited.

Influx to uni­ver­si­ties remains high 

The num­ber of new stu­dents will remain high in the coming years, accor­ding to new esti­ma­tes by the Stan­ding Con­fe­rence of the Minis­ters of Edu­ca­ti­on and Cul-tural Affairs (KMK). By 2019 it is expec­ted that around 500,000 young peo­p­le will enrol at uni-ver­si­ty each year. Accor­ding to KMK, the num­ber of new stu-dents in 2013 amoun­ted to around 507,000. 

Bava­ria to increase fun­ding for stu­dent apart­ments 

Fede­ral Sta­te Bava­ria plans to increase fun­ding for the con-struc­tion of stu­dent resi­den­ces. In order to crea­te 1,000 new places in stu­dent accom­mo­da-tion, fun­ding has been increased to EUR 27.5 mil­li­on for 2014 – which cor­re­sponds to EUR 27,500 per one apart­ment. 

Sta­ble per­cen­ta­ge of new stu-dents 

Sin­ce 2011 the per­cen­ta­ge of new stu­dents in Ger­ma­ny has been con­stant­ly abo­ve 50 per cent. Expen­dit­u­re on edu­ca­ti­on, rese­arch and sci­ence now ac-counts for more that EUR 247 bil­li­on, or 9.3 per cent, of GDP. 

Stu­dent housing an inter­na­ti­on-ally important asset class 

In a recent ana­ly­sis, glo­bal real estate ser­vice pro­vi­der Savills con­cluded that stu­dent accom-moda­ti­on has beco­me a major asset class at an inter­na­tio­nal level. Glo­bal invest­ments in-creased from EUR 2.5 bil­li­on in 2007 to around EUR 5.3 bil­li­on in 2013. Stu­dent accom­mo­da­ti­on gene­ra­tes relia­ble ren­tal returns thanks to high and sta­ble de-mand. 

EUR 2.7 bil­li­on requi­red 

Accor­ding to esti­ma­tes by the Ger­man stu­dent ser­vices orga­ni-sati­on (DSW), invest­ment of EUR 2.7 bil­li­on is requi­red to crea­te 45,000 addi­tio­nal places in stu-dent accom­mo­da­ti­on in Ger­ma­ny – just for low-inco­me stu­dents. 

1‑person house­holds in majo­ri­ty 

Accor­ding the Fede­ral Sta­tis­ti­cal Office (Desta­tis), the most com-mon house­hold is the sin­gle-per­son house­hold (2011). A total of 37.2 per cent of all house­holds are occu­p­ied by only one per­son, and this figu­re clim­bs to as high as 42 per cent in lar­ge cities. Of tho­se living alo­ne, 17.6 per cent are youn­ger than 30 – 34.1 per cent are over 64. 

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