Corestate Capital Holding has announced its plans to invest a total of €2.4bn in its micro-living segment until the end of 2019. The company has already acquired 26 plots for development and properties with more than 7,600 apartments for students, commuters, project employees, entrepreneurs and young professionals. The current investment volume amounts to €1.8bn.
Over the next two years, several assets will be added to the portfolio, which is set to grow beyond the 10,000-unit mark and reach a total investment volume of €2.4bn. Target locations are selected German and European metropolises as well as university cities.
Thomas Landschreiber, Co-Founder and Chief Investment Officer, Corestate: “There are some mega-trends driving the demand for micro-apartments across Europe. Urbanisation is a significant factor. We are seeing population increases in city centres with strong economies that offer good job prospects and excellent universities. These locations are attracting workers willing to travel to find employment and the student population. Micro-apartments are in demand by both groups. We are at the beginning of the cycle in the micro-living asset class. There is a supply and demand imbalance in single-person housing, so for managers and investors, this segment of the market offers real development and investment potential in the coming years.”