Housing remains one of the key issues for institutional real estate investors. This is due both to the market recovery after the interest rate turnaround and to structurally high demand, while at the same time too little is being built due to high costs. Urbanisation, demographic change, smaller households and a more mobile working world are changing the demand for housing both quantitatively and qualitatively. A new understanding of “housing infrastructure” is needed.
After all, it’s not just about the lack of apartments in metropolises and swarm cities, and rents are rising accordingly. The other question is what kind of housing will be needed in the future. The number of households continues to increase, while the average household size is decreasing. In Germany, an increase from around 40 to 43 million households is therefore expected by 2035. In addition, more and more people live, work, study or commute to cities. The pressure on urban areas is increasing disproportionately. Living needs to be more efficient, flexible and affordable.
Against this backdrop, Micro Living is not a substitute for traditional housing construction. It’s also not just a “small apartment”. Instead, they are their own living concepts: compact private units, smart floor plans, furnished or partially furnished equipment, flexible rental models as well as communal and service areas. Micro Living thus addresses very different life phases and target groups, which have in common that they are often insufficiently taken into account in the classic housing market.
