Market Trends of Germany Student Accommodation Industry
Cost of Living In Germany Affecting Student Accommodation Market
Universities located in different cities and difference in cities living expense is among the major factors students look over while finalizing a location and university of their choice. Some of the best cities that students consider include Munich, Berlin, Stuttgart, Frankfurt, Dresden, Aachen, Bonn, Hamburg, Cologne, and Leipzig. These cities provide students with top-ranked universities with diverse communities and prospects. These trends among student choice lead most of the student accommodation providers to invest in these cities for their business.
During the Winter Semester of 2021, Bavaria, Hesse, and Berlin were among the states with a student population, leading to many students entering the student accommodation market.
Accommodation price for students varies by the city in Germany. For Berlin average cost of rent varies from USD (1001-1,344) per month. Similarly, for other countries of Hamburg, Munich, Frankfurt, and Stuttgart, the average cost ranges from USD[(1043.12-1463),(1,420-1,902),(1,526-1,530) and (1005.21-1,383)] respectively in the year 2021.
Increasing Enrollment of International Student
With the resumption of travel bans and restrictions, international student enrollment rose. In 2021, at least 330,000 international students were enrolled in universities in Germany. Germany in 2021 includes over 400 universities offering courses in bachelor's, master's, and Ph.D. programs. Many students are enrolled every academic year, creating demand for student accommodation.
The soaring price of education across the globe attracts many students to study in german universities, creating positive externalities for the student accommodation market. Almost 90% of the degree programs offered by public students in Germany are free of tuition, providing free space for students to spend on accommodation.
As per a study by the German organization international Students in Germany observed continuous growth over the years, from 394,665 students enrolled in higher education in 2019 to 416,437 in 2021, with continued growth expected over the coming years.
