Micro-living remains a growth driver in the housing market

André Adami, Head of Residential at bulwiengesa, puts the development in order to
a: "The demand for micro-apartments remains high. The
occupancy rate of 96 % shows that flexible and professionally managed
housing offers are still urgently needed. At the same time, we are observing
towards larger apartments and an increasing focus on
different target groups such as young professionals, commuters and
Singles."

The current study is based on data from 121 apartment buildings with around
27,400 units and a total area of approximately 687,350 square meters, and
thus represents a market panel that provides current developments and assessments
professional market participant. More than 70% of the collected
Apartment buildings are located in German A-cities.

In addition to the persistently high demand, rents continue to be driven by rising
energy and operating costs as well as the general cost development.
Around 80% of the market participants surveyed plan to incur additional ancillary costs for
new lettings to the tenants in full.

"The high demand for housing as well as increasing management and
Maintenance costs are essential for the continuous
Rental price development in this segment," explains Lena Schwesinger, Real Estate
Consultant at bulwiengesa. "In addition, we see that modern apartment buildings with
extensive service and community offerings as well as digital solutions
are increasingly in demand. These quality requirements are also reflected in the
rent level."

The rent level varies significantly depending on location and property quality. In
private apartment buildings, the monthly all-in rent of
around 450 euros to 1,620 euros. On a square metre basis, rents fluctuate
between 18.00 and 48.30 euros.

For the first time, the fluctuation in the segment was examined in the current market report.
The average turnover rate is 31%. Particularly low
fluctuations are evident in tense housing markets in A-cities with
an average of 28%. The highest values were recorded in D cities and other
cities with around 45% each.

Market participants remain optimistic for the coming years. The
market participants surveyed within the framework of the initiative expect to be able to
2026 to 2028 annual rent increases of between 2 and 6%.

Leasing continues to vary in demand. While
German and European students are comparatively easy to reach,
recreates marketing to international target groups outside Europe
assessment of market participants represents a significantly higher effort. In addition,
renting out high-priced apartments remains a particular challenge.

On the reference date of the survey, 34% of the rented apartments were for students.
The remaining 66 percent are mainly made up of singles, young professionals and
commuters.