Real estate has always been considered a relatively safe investment in the investment market. A new trend in the real estate industry has generated great interest among investors in recent years; the so-called co-living concept continues to inspire many investors, operators and residents to this day.
In the up-and-coming co-living asset class, certain target groups such as students and commuters are to be provided with temporary living space. This living space can be designed completely different from provider to provider: Most often, however, a co-living property conceals individual apartments rented via a common platform, one-room apartments in a residential building specially furnished for this purpose or comfortable service apartments.
Co-living apartments enable flexible moving in and out
In contrast to normal apartments, some precautions have already been taken here to make moving in and out easier for the co-living tenants: The rooms are usually already furnished and complex organizational matters such as radio fees and an ongoing internet connection are already taken care of by the landlord. Repair costs and ancillary costs are also usually covered by this. Regular cleaning of the rented apartment is often already contractually regulated.
Study reveals causes of increasing demand for co-living
In a recently published study by the real estate services company CBRE, the social and economic market trends in Europe are examined in order to understand the causes of the extreme increase in demand for co-living in recent years. The focus of this study was on the European metropolises of Berlin, London, Amsterdam, Milan, Vienna and Madrid.
According to Jennet Siebrits, Head of Research at CBRE, the increase is mainly due to the change in the housing situation of people in Europe: “More and more people
live in Europe for rent – in total it is now more than 30 percent of the population, ”said the expert in the context of the study. According to Siebrits, the main reasons for this are the steep rise in prices for residential property, social changes and increasing urbanization. In a 2018 data collection, the United Nation estimated that 68 percent of the world’s population will live in urban areas by 2050. Currently it is only around 55 percent.
Co-living apartments are sometimes cheaper than classic rental apartments
The rising prices for condominiums in particular are a problem for many people in Europe. The great advantage of co-living rental apartments is that the rented properties usually cost less than conventional rental apartments: “In four of the six cities we visit We focused on our analysis, the costs for co-living, often including ancillary costs and cleaning, are cheaper than classic rental apartments, explains Jennet Siebrits. The good price-performance ratio is particularly attractive for students and low-income earners.
Co-living offers a social environment and a low carbon footprint
According to the scientists, co-living also promotes social interaction among tenants. Young people in particular often face major challenges at the start of their studies or when they start their careers. Living together in the co-living community gives them the opportunity to seek help from others and share their concerns with someone. Being together can also prevent loneliness, because, according to the study authors, this is an increasingly common problem in Europe. In addition to the apartments, the co-living platforms often set up common rooms and cafés to give members an opportunity for social exchange.
According to the CBRE study, co-living also lowers the CO2 balance by sharing living areas and areas. For many people, sustainability has become an important issue, and the ecological footprint is playing an increasingly important role when choosing a property.
Effects of Corona on co-living
According to Jo Winchester, Executive Director at CBRE, the co-living operators have already adjusted to the changes caused by the Corona crisis. Attempts are made to reduce the risk of infection as much as possible with contactless acceptance points for mail and regular cleaning of the communal areas. The expert also emphasizes the advantage of separate apartments in co-living in contrast to shared apartments or dormitories: “With its separate rooms for singles and couples, co-living offers better opportunities for social distancing than, for example, shared apartments,” he emphasized in the study. Nevertheless, the social exchange is not neglected during this time; According to Winchester, the operators of the co-living facilities should endeavor to hold virtual events and events to bridge the gap.
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