Deutsche Hypo – NORD/LB Real Estate Finance has published a new market study titled “Modern Living – Growth Potential in Future Markets.” The comprehensive analysis reveals that housing concepts such as student accommodation, serviced apartments, and senior living with services are gaining traction across Europe – both socially and as a strategic asset class for institutional investors.
The study examines key demand drivers including urbanisation, demographic change, and evolving lifestyles. In particular, metropolitan areas and university cities are seeing a growing need for flexible, service-oriented housing solutions. At the same time, supply often falls short of demand – a structural deficit that opens up new opportunities for project development and investment.
Ingo Martin, Head of Real Estate Finance Origination at Deutsche Hypo – NORD/LB Real Estate Finance, explains: “Modern living is no longer a niche product – it’s a central building block of forward-looking real estate portfolios. This asset class not only addresses pressing housing policy issues, but its combination of stable demand, flexible usage concepts and attractive return prospects makes it especially appealing to long-term investors.”
Key findings from the study include:
- Student Accommodation (PBSA): Germany currently faces a shortfall of around 580,000 beds, expected to grow to over 700,000 by 2030. Across Europe, the backlog is even greater – with an investment potential of approximately €450 billion.
- Serviced Apartments: High occupancy rates, rising daily rates and increasing demand for temporary housing make this segment a resilient growth market.
- Senior Living with Services: The ageing population and rising purchasing power of the 65+ generation are driving demand for barrier-free, comfortable housing with service offerings – while supply remains limited.
The topic of housing will also be in focus at this year’s EXPO REAL in Munich. Interested market participants are invited to visit the Deutsche Hypo – NORD/LB Real Estate Finance stand to discuss current market developments, financing approaches and project ideas.
This year, Deutsche Hypo will be located for the first time next to the Region Hannover stand in Hall C1, Stand 312.