{"id":1730,"date":"2015-07-09T09:55:42","date_gmt":"2015-07-09T07:55:42","guid":{"rendered":"https:\/\/ic-campus.com\/student-housing-projects-noteestimates\/"},"modified":"2023-06-20T17:42:18","modified_gmt":"2023-06-20T15:42:18","slug":"student-housing-projects-noteestimates","status":"publish","type":"post","link":"https:\/\/ic-campus.com\/en\/student-housing-projects-noteestimates\/","title":{"rendered":"Student Housing: Projects, Noteestimates"},"content":{"rendered":"<h2>StudentHousing: Projects, notestimates!<\/h2>\n<p><strong>Dear readers,<\/strong><\/p>\n<p>For the last few weeks, the German real estate press has been de- bating whether demand for \u201chighly priced\u201d student accom\u00admoda- tion has now been met. Given the growing number of people of all ages living alone, the constantly high number of students and the incre\u00adasing trend in foreign students moving to Germany, we say defini\u00adtely not. While an incre\u00adasing percen\u00adtage of \u201ccompact accom- modation\u201d is being constructed, this trend has not been under way for that long.<\/p>\n<p>Driven by the huge demand for single person house\u00adholds in all price segments, the need for student accom\u00admo\u00adda\u00adtion in Germany\u00b4s met- ropolitan cities and univer\u00adsity towns with a growing popula\u00adtion in all price segments will not be covered for years. Of course, all this has rallied numerous inves\u00adtors \u2013 but no one can say for sure just how many of the announced projects will actually be realised. In order to achieve long-term success and reasonable returns, it is es- sential to have a clear business model, in-depth knowledge of the \u201cstudent\u201d target group and an effec\u00adtive opera\u00adting concept.<\/p>\n<p>We want to point out two things: Inter\u00adna\u00adtional Campus will be rep- resented at the EXPO REAL \u2013 at a joint exhibi\u00adtion stand with the City of Munich. Our consul\u00adtancy subsi\u00addiary, Consul\u00adting Cum Laude, will also be conduc\u00adting a highly topical survey on the current lack of young talent in the German real estate industry together with branch magazine \u201cImmobi\u00adli\u00aden\u00adwirt\u00adschaft\u201d. You are very welcome to parti\u00adci\u00adpate via this <a href=\"http:\/\/www.onlineumfragen.com\/login.cfm?umfrage=62449\" target=\"_blank\" rel=\"noopener\"><strong>link<\/strong><\/a>!<\/p>\n<p>I hope you enjoy the newsletter,<\/p>\n<p><strong>Horst Lieder<\/strong><\/p>\n<p>CEO Inter\u00adna\u00adtional Campus AG<\/p>\n<p>\u200d<\/p>\n<p><strong>German residen\u00adtial real estate with a total return of 8.1 percent per year&nbsp;<\/strong><\/p>\n<p>Total return, \u2013 the increase in value plus rents \u2013 for apart-ments in the 127 largest A and B cities in Germany, increased by an average of 8.1 percent per year between 1992 and 2014. This means that total return outper\u00adformed fixed-interest bonds (REX \/ 6.3 percent) and inter\u00adna\u00adtional stocks (MSCI \/ 6.9 percent). The average rental return since 1999 has been around 3 percent higher than German govern\u00adment bond yields. This is accor\u00adding to a re-port in WELT AM SONNTAG based on data from the ECB European Central Bank, RIWIS, MSCI and Deutsche Bank.&nbsp;<\/p>\n<p><strong>Student Housing as a <\/strong><strong>part of the asset class&nbsp;<\/strong><strong>residen\u00adtial&nbsp;<\/strong><\/p>\n<p>Rents for \u201ccompact\u201d or \u201csmall-scale\u201d apart\u00adments with one or two rooms have risen much more sharply than students\u2019 in-come. Students as well as young profes\u00adsio\u00adnals and trainees are incre\u00adasingly being squeezed out of the private rental market. For this reason, in Germany the stu-dent housing market segment has also become an invest\u00adment niche within the real estate resi-dential asset class in the last few years. Thanks to attrac\u00adtive re-turns which are relatively non-cyclical and somewhat higher than tradi\u00adtional real estate re-turns, Student Housing has be-come a parti\u00adcu\u00adlarly appealing addition to portfo\u00adlios for institu-tional and semi-profes\u00adsional in-vestors.&nbsp;<\/p>\n<p><strong>Germany: No. 1 invest-ment desti\u00adna\u00adtion in&nbsp;<\/strong><strong>Europe&nbsp;<\/strong><\/p>\n<p>During the European Student Accom\u00admo\u00adda\u00adtion Confe\u00adrence in London in May 2015 with more than 500 experts and partici-pants, when asked \u201cIn which country would you invest at the moment?\u201d, around 50 percent of those surveyed replied: in Ger-many. As a result, Germany has become the primary invest\u00adment location for inter\u00adna\u00adtional inves-tors in student accom\u00admo\u00adda\u00adtion within Europe \u2013 well ahead of the Nether\u00adlands and Spain.&nbsp;<\/p>\n<p><strong>Market develo\u00adp\u00adment&nbsp;<\/strong><\/p>\n<p><strong>Student Housing&nbsp;<\/strong><\/p>\n<p>Student Housing is becoming in-creasingly important as an in-vestment class, although only estimates are available as to the actual number of projects and student residences under con-struc\u00adtion in Germany. Many re-gional project develo\u00adpers want to address the issue and develop small-unit housing products, but not all market parti\u00adci\u00adpants are able to realise \u201ccompact\u201d or \u201csmall-scale\u201d accom\u00admo\u00adda\u00adtion. Many of the housing projects fail due to lack of finan\u00adcing because of insuf\u00adfi\u00adcient knowledge of the target group \u201cstudent\u201d and the absence of effec\u00adtive opera\u00adting concepts and platforms. Building \u201csmall\u201d is not enough. Student housing does not work in all price segments or in all cities; the city of Frank\u00adfurt an der Oder in Eastern Germany is not the vibrant city of Frank\u00adfurt am Main. What perplexes many market obser\u00advers is that there is no clear distinc\u00adtion between products and target groups in compact housing. We want to explain three concepts.&nbsp;<\/p>\n<p><strong>For business people:&nbsp;<\/strong><strong>\u201cServiced apart\u00adments\u201d&nbsp;<\/strong><\/p>\n<p>The \u201cserviced apart\u00adment\u201d con-cept, or \u201cshort-term accom\u00admoda-tion\u201d, is derived from the hotel business. Besides furnished one and two-room apart\u00adments in cen-tral locations with living space of between 25 to 35 square metres, services similar to those provided by hotels can be had for an extra cost: from laundry service to con-cert tickets. The primary target group is business people and pro-ject workers.&nbsp;<\/p>\n<p><strong>Micro Living&nbsp;<\/strong><\/p>\n<p>Micro apart\u00adments are small apart\u00adments with one to two rooms. They are either (partly) furnished or come without fur-niture. Compared to student housing apart\u00adments, micro apart\u00adments are bigger on aver-age and (generally) do not offer use of communal areas. The tar-get groups for micro apart\u00adments are young profes\u00adsio\u00adnals, com-muters or PhD students, for ex-ample \u2013 all people who work and have their own income and a longer tenancy.&nbsp;<\/p>\n<p><strong>For students:&nbsp;<\/strong><strong>\u201cStudent Housing\u201d&nbsp;<\/strong><\/p>\n<p>On the other hand, today\u2019s stu-dent accom\u00admo\u00adda\u00adtion includes communal areas such as semi-nar rooms, cooking area, lounges etc. and is geared towards stu-dents, i.e. young people aged 17 and over from various cultural backgrounds. This is why aspects like commu\u00adnity building and secu-rity are especi\u00adally important when it comes to the Student Housing segment. Student apart\u00adments are generally between 14 and 24 square metres and \u2013 depen\u00adding on provider and quality standards \u2013 a bathroom and kitchenette.<\/p>\n<p><strong>Three questions for&nbsp;<\/strong><strong>Alexander Gulya&nbsp;<\/strong><strong>about THE FIZZ&nbsp;<\/strong><strong>archi\u00adtec\u00adture:&nbsp;<\/strong><\/p>\n<p><strong>How should a student&nbsp;<\/strong><strong>accom\u00admo\u00adda\u00adtion be con-structed?&nbsp;<\/strong><\/p>\n<p>One the one hand, it must meet today\u00b4s needs of the residents, be integrated into its immediate environ\u00adment and have a time-less design. On the other hand, it should be highly functional: with a cashless laundry room, a self-explana\u00adtory signage system and include durable furni\u00adture with scope for an indivi\u00addual lay-out that makes you immedia\u00adtely feel at home.&nbsp;<\/p>\n<p><strong>How can returns be achieved sustain\u00adably?&nbsp;<\/strong><\/p>\n<p>Parti\u00adcular atten\u00adtion should be paid to ongoing opera\u00adting costs, especi\u00adally when it comes to all-in-rents. For example, we en-sure that circu\u00adla\u00adtion space is op-timally utilised, and there\u00adfore only use windows which cannot be tilted and energy-efficient LED lights. Our high KfW 70 and KfW 55 standards keep energy costs minimal.&nbsp;<\/p>\n<p><strong>What makes THE FIZZ&nbsp;<\/strong><\/p>\n<p><strong>housing so special?&nbsp;<\/strong><\/p>\n<p>All THE FIZZ accom\u00admo\u00adda\u00adtion lives up to our quality standards and reflects our brand values. Our first-class archi\u00adtec\u00adture and consis\u00adtent high quality stand-ards set us apart from the com-petition. The hearts of our THE FIZZ residences are the communal areas with a central recep\u00adtion with house manager service, seminar room, cooking area and lounges.&nbsp;<\/p>\n<p>\u200d<\/p>\n<h2>News&nbsp;<\/h2>\n<p><strong>Inter\u00adna\u00adtional Campus AG&nbsp;<\/strong><strong>at the EXPO REAL 2015&nbsp;<\/strong><\/p>\n<p>Inter\u00adna\u00adtional Campus AG will be repre\u00adsented at the EXPO REAL 2015 at joint exhibi-tion stand no. <strong>A1.320 <\/strong>within the city of Munich.&nbsp;<\/p>\n<p><strong>Exten\u00adsive survey on lack of young talent&nbsp;<\/strong><\/p>\n<p>Consul\u00adting Cum Laude, the con-sulting subsi\u00addiary of Inter\u00adna\u00adtion-al Campus AG and specia\u00adlist for employer branding and talent recrui\u00adting, are conduc\u00adting a sur-vey on the lack of young talent of the so called \u201cGenera\u00adtion Y\u201d in the German real estate sector together with sector magazine Immobi\u00adli\u00aden\u00adwirt\u00adschaft. The re-sults of the exten\u00adsive survey will be published exclu\u00adsi\u00advely in the November edition of Immo-bilien\u00adwirt\u00adschaft.&nbsp;<\/p>\n<p><strong>Hamburg remains young&nbsp;<\/strong><\/p>\n<p>Accor\u00adding to a Bertels\u00admann Stiftung report, the federal states of Berlin and Hamburg will have the youngest popula-tion in Germany by 2030 \u2013 with an average age of 43 at the me-dian.&nbsp;<\/p>\n<p><strong>620,000 new students&nbsp;<\/strong><\/p>\n<p>In its educa\u00adtion report \u201cBild-ungsre\u00adport 2020\u201c, the Stifter-verband f\u00fcr die Deutsche Wirtschaft forecasts that there will be around 620,000 new stu-dents in 2025. While the number of German students is decli\u00adning, the number of foreign students is rising sharply.&nbsp;<\/p>\n<p><strong>Gross added value <\/strong><strong>292 million euros&nbsp;<\/strong><\/p>\n<p>Accor\u00adding to calcu\u00adla\u00adtions by the German Academic Exchange Service (DAAD), foreign students generate gross added value of 292 million euros each year and more than 3,100 new jobs. Pub-lic spending on educa\u00adtion would be totally covered if just 2 per-cent of these students start working in Germany after they graduate.&nbsp;<\/p>\n<p><strong>Growing need for housing&nbsp;<\/strong><\/p>\n<p>Accor\u00adding to the BBSR, the popula\u00adtion in Germany will de-cline to 78.2 million in 2035 (2012: 80.5 million). However, the number of house\u00adholds will increase by 2 percent.<\/p>\n<p><strong>IC Nether\u00adlands starts con-struc\u00adtion in Amsterdam&nbsp;<\/strong><\/p>\n<p>IC Nether\u00adlands B.V., a subsi\u00addiary of Inter\u00adna\u00adtional Campus AG, started the construc\u00adtion of a stu-dent residence in Amsterdam-Zeebur\u00adge\u00adrei\u00adland in June. DUWO, the largest operator in the Neth-erlands, will run the student ac-commo\u00adda\u00adtion as the general tenant. Zeebur\u00adge\u00adrei\u00adland is the first of five projects of the Am-sterdam portfolio of IC Nether-lands B.V.&nbsp;<\/p>\n<p><strong>Best student cities: <\/strong><strong>Berlin ranks third in the world&nbsp;<\/strong><\/p>\n<p>In the \u201cBest Student Cities 2015\u201d ranking by QS Top Univer\u00adsi\u00adties, Berlin came in third place in the category \u201cafforda\u00adbility\u201d after Tai-pei and Mexico City. Munich came fifth.&nbsp;<\/p>\n<p><strong>350,000 foreign students in Germany&nbsp;<\/strong><\/p>\n<p>The number of foreign students exceeded 300,000 for the first time in 2014. The objec\u00adtive of the German govern\u00adment and the federal states is to attract around 350,000 foreign students to Ger-many by 2020. China and India will play an incre\u00adasingly im-portant role in this regard.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the last few weeks, the German real estate press has been de- bating whether demand for \u201chighly priced\u201d student accom\u00admoda- tion has now been met.<\/p>\n","protected":false},"author":1,"featured_media":1223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[47,10],"tags":[],"class_list":["post-1730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-munich","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts\/1730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/comments?post=1730"}],"version-history":[{"count":0,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts\/1730\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/media\/1223"}],"wp:attachment":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/media?parent=1730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/categories?post=1730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/tags?post=1730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}