Germany’s student market received a boost in the 2011-12 academic year with the suspension of national service, with student numbers increasing by 7%.

Accommodation for students in Germany is provided through Studentenwerk, a semi-governmental institution providing a range of services to college and university students. There is one local Studentenwerk in each university town or city, providing services to the students of all higher education institutions in the metropolitan region.

Studentenwerk accommodation is relatively affordable by European standards, averaging €57 per week across the German cities we have analysed. Rents range from less than €40 per week in Bayreuth to over €70 per week in Darmstadt.

There are just under 230,000 places in publicly funded halls provided by ‘Studentenwerk’, equating to a national student housing provision rate of just 11%. This provision rate ranges from 8% in Darmstadt to 20% in Göttingen.

There is currently limited institutional investment in student housing in the country. Local player Youniq is Germany’s largest private operator and developer of student housing and has over 3,700 units in operation or under construction. The provider targets the upper tiers of the student accommodation market, offering individual apartments rather than rooms with shared kitchen facilities. It has intentions to develop and market 1,500 to 2,500 student housing units a year.

Others active in the market include UK developer Crosslane and German property company Bauer Capital, who have formed a joint venture for student housing projects and portfolios in Germany. The Victus European Student Accommodation Fund will acquire, develop and build 3,000-5,000 student beds throughout Germany over the next five years, targeting Munich, Hamburg and Oldenburg.

Our analysis suggests German cities feature relatively low down the cost of living and renting scale on a European level, given the affordability of accommodation provided by the country’s Studentenwerk.

Nonetheless, the rate of student housing provision in many German cities is low, and private providers are making moves on the market. Darmstadt stands out as an opportunity, given higher cost of living and particularly low provision of student housing.

Taken from
Spotlight: European Student Housing