One main reason for the strong influx to Germany’s capital is its varied academic landscape. Berlin is Germany’s number 1 with the most students. More than 171,000 students were enrolled in one of a total of 47 universities in Berlin in the winter semester 2014/2015. Among them are as well two elite universities. The popularity of the city is reflected by a strong part of 17 % of foreign students. as recently shown by the research study “World Student Housing” published by Savills, reasons for choosing berlin as a place of study are besides the renowned educational and scientific landscape above all the low tuition fees. According to the study, an average of a little more than $ 1,000 (EUR 935) per month is enough to cover costs of living, accommodation and tuition fees. In Boston you should expect costs to be about five times higher.
Students Are Strengthening Berlin’s Housing Market
Meanwhile and especially at the beginning of a semester, a significant shortage of supply in Berlin’s housing market can be observed which has consequently led to substantial rental increases. Due to financial restrictions on student services and a rising number of students, the supply rate for publicly funded student accommodations has decreased to less than 6 %. Whereas the offer of corresponding properties on the private sector is rising progressively. The image of classical student gigs is out of date. The study “World Student Housing” states that the aspect of a low supply in conjunction with high rents in university cities result not rarely in the fact that students live in an condominium financed by their parents. After five years of study, a monthly rent of for example EUR 600 will finally lead to EUR 36,000 of living costs. Instead of this, own savings could be invested safely if parents provide equity to buy the apartment. In this context, the purchase of an apartment will be of interest for both, using it as an accommodation for their son or daughter and for capital investment.
When children have finished their studies and do not want to stay longer in the apartment, it can be rented out again to other students without any problems. Even if somebody wants to resell the apartment after the end of the study, there should not be any problems, too. Currently, such is the need especially for small city-apartments including single-households and demand is expected to grow continuously.
International Students With High Requirements
Besides German students, an increasing number of international students appreciate the German educational system. Offering a broad selection of universities, berlin is particularly popular among foreign students. Today than ever before, foreign students are having higher expectations on universities and the residential environment they are choosing, as indicated by the Savills study. China is the largest source market for internationally mobile graduates. 650,000 Chinese citizens complete their studies abroad and the number almost doubled between 2007 and 2011. Figures are expected to rise further. According to the Savills study, Chines students are focussing and will focus on USA, Germany and the UK. Foreign students or rather their parents are taking low tuition fees as an opportunity to invest in an apartment in Berlin. Apart from accommodation, purchasing an apartment in Berlin for capital investment results to be a deciding factor, too.