Why student apartments are worthwhile

There is a housing shortage in almost all German university cities – and this is exactly where your investment comes in. Small apartments or shared apartments near the university(map with universities) are always in demand, and you can buy, upgrade and rent them out directly without a lot of start-up capital – stress-free via a property management company.

Constant tenant turnover is an advantage

Students are moving more frequently, starting a new semester or changing cities. For you as an investor, this means: no fear of vacancies, but constant demand – especially in central locations or close to the university.

Compact size = high efficiency

An apartment with 20 to 30 m² will cost you less to buy and less to maintain. At the same time, you can achieve more rent per square meter than with larger apartments by equipping it with a kitchen and possibly furnishing it.

Little effort, clear processes

Instead of taking care of rental contracts, utility bills and minor repairs yourself, you can commission a property management company – ideal for beginners or if you have a busy work schedule.

• High demand all year round
• Compact properties with strong returns
• Hand over administration completely

What you should consider when buying

When it comes to student apartments, location counts. If you buy centrally, you will get more rent and find new tenants more easily. It is also important that you have the incidental purchase costs under control – and know your net yield, not just the gross figure from the exposé.

Only proximity to the university brings real returns

The classic: a small apartment within walking distance of the university or with a direct subway connection. Without this, it will be difficult to reach the target group – especially for smaller units.

Keep purchase price low

The trick is to find a solid property below market value – e.g. in a basic condition that can easily be upgraded with a little paint, a new kitchen and furniture. This will increase the value without you having to dig deep into your pockets.

Buying cheap real estate? Here are my tips from Los Angeles: Buying real estate cheaply (acquisition)

Plan property management from the outset

The monthly costs for property management (usually €25-40) are manageable – in return, you get peace of mind, professionalism and legal protection. This is worth its weight in gold, especially if you have several tenants per year.

• Affordable shopping with potential
• Location = daily demand factor
• Property management saves time and nerves

More rent through simple fittings

Do you want more than the standard price? Then invest specifically in equipment – and target students who don’t want to organize their own furniture or kitchen.

Fitted kitchen as a rental booster

For €399, you can get a modern, small fitted kitchen with a fridge, hob and storage space. This will immediately set you apart – and you can easily charge €50 more rent. Many students specifically look for apartments with their own kitchen.

Fitted kitchen = 399 €

Surcharge per month = 37.50 (at 1.50 € / m² for 25 m²)

Amortized in 11 months

To do this, make a handwritten note in the rental agreement that your tenants are responsible for any damage or repairs to the fitted kitchen.

Furnished = more rent, less vacancy

A simple bed, desk and wardrobe – that’s all you need. You can include the furnishings in the rent; many tenants are happy to pay for this as they don’t have to buy or transport any furniture.

Paint once = better effect

A light coat of paint makes a big difference. Clean walls and a well-maintained floor look immediately more modern – even if the substance is simple. The effort is minimal, the effect is great.

• Kitchen: +50-100 € rent possible
• Furnished = reach target group directly
• Looks count – even for students

Micro-apartments as an alternative or extension

If you want to scale up the concept, take a look at micro-apartments – they work in a similar way to student apartments, but are often more modern and also appeal to young professionals or commuters. Advantage: often slightly higher rent, same basic logic.

More target groups, similar strategy

You can reach more tenant groups through better facilities, services (e.g. Wi-Fi, cleaning) or location in business districts. The principle remains: small space, high rent, low vacancy rate.

Investing through society

Especially if you are buying several units, it is worth taking a look at GmbH structures in order to work efficiently from a tax perspective. We will be happy to advise you on this – or you can learn more in our further videos.

• Scalable due to many locations
• Broader target group than students
• GmbH models for larger investments

10 % return is achievable – if you buy smart

Student apartments offer you a solid, calculable entry into the world of real estate. If you buy cheaply, modernize a little and adapt to the target group, you can achieve realistic net yields of 8 to 10 percent. Even better: you hand over the management directly – and have created your first real investment property with a small apartment. Now it’s up to you to take the next step.

Micro-apartment as a capital investment: advantages for you

Small apartment with 25 m² instead of a large 4-room apartment. Why? More and more people are living alone in single households. Students, singles, holidaymakers, but also professional groups such as fitters, who are often in different cities. Learn more about investing in small condominiums, so-called micro-apartments, here.

• Micro-apartment as a capital investment

Buying a building plot in Berlin

The property is located in one of the most sought-after locations in the capital. Its strategic position makes it ideal for high-quality project developments such as exclusive apartment buildings, townhouses or prestigious villas. The demand for new living space in central districts of Berlin remains unbroken – supply, on the other hand, is very limited.

Potential for exclusive project development

The site offers extensive design options and is suitable for both private investors and institutional project developers. Due to its location, size and development possibilities, it offers the opportunity to realize one of the most important construction projects in Berlin-Mitte.

• Property volume: approx. 90 million euros
• Project volume incl. new building: approx. 288 million euros
• Excellent location in Berlin

Berlin: Dynamic real estate market

Berlin

The capital attracts national and international investors alike. High-quality residential and commercial properties in central locations are in particularly high demand. Berlin combines economic growth, internationality and lifestyle in a unique way, which has a direct impact on price trends.

Advantages of the Berlin market

With constantly rising demand and limited supply, Berlin is one of the most stable markets in Europe. Project developments in central locations achieve above-average yields and retain their value in the long term. Projects in the premium segment in particular benefit from the city’s international appeal.

• High demand in the premium segment
• Limited supply in prime locations
• Stable performance

Your real estate consultant for Berlin

Exclusive properties and large-volume project developments require discreet advice and excellent market knowledge. As real estate consultants, we provide you with confidential and individual support through all phases of the purchase or sale. Benefit from our expertise in Berlin’s premium segment and secure access to exceptional projects.

Would you like to find out more? Write to us or give us a call:

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