Micro-properties represent modern architecture and living comfort, with functional space concepts for small living areas. These are furnished or partially furnished apartments, typically under 30 square meters, and are located in larger complexes with 100 or more units. 

Each apartment usually has its own bathroom and kitchenette. The apartments are stylish and modern, equipped with durable materials and up-to-date communication technology.

A micro-apartment serves one or at most two people as a temporary home for several months or a few years. The target tenants for this flexible living option are students, young professionals, or commuters.

Micro-apartments are often furnished, with standardized furniture that includes space-saving and multifunctional pieces. In many cases, the rental agreement also includes additional services, such as cleaning or security. 

Many micro-apartment complexes offer various communal facilities for residents, such as terraces, lounges, or sports facilities. 

Relatively low entry prices or investment due to small unit sizes

• Typically higher returns compared to conventional properties

• Comprehensive service package provided by the developer (including leasing, management, and operation)

• Rent pool concept offers protection against rental defaults

• Partial owner-occupancy and tenant selection possible

Due to demand far exceeding supply, landlords enjoy a high level of rental security. On average, the returns per square meter can even surpass those of multi-room apartments.

The management and operation of these small properties should be handled by experienced operators. This way, as an investor, you don’t need to worry about tenant turnover, renovations, etc.

The demand for small, affordable, and high-quality furnished living units is steadily increasing. Reasons for this include the rising number of students, the trend toward urbanization, and the growing number of single-person households. The demand for 1-2 person living spaces exceeds supply. This imbalance presents investors with a significant opportunity to invest their money sustainably and with a forward-looking approach. Micro-properties are highly profitable investments because higher rents per square meter can be charged compared to conventional condominiums. As a result, investors benefit from significantly higher returns.

Like all real estate, micro-apartments are tangible assets. Therefore, they provide protection against inflation as they maintain their value regardless of general price trends.

Investing in these apartments offers the potential for high returns for the following reasons:

• The average achievable rent is higher than for larger apartments in comparable locations.

• Frequent tenant turnover provides the opportunity to implement rent increases at short intervals.

• The rental risk is low, as micro-apartments are in high demand.

• Due to the tenant structure, rental defaults and property damage are rare.

• Rent price regulations, such as rent caps or rental price surveys, do not apply to micro-apartments that are rented for a limited time or furnished.

• Favorable financing through KfW loans from the state development bank and the current low interest rates.

Due to the current low interest rates and low investment amounts, micro/student properties are particularly suitable for young investors who are interested in quick and secure wealth building.

However, they are also a good option for experienced investors who should consider this real estate trend for diversification purposes. Since a professional manager takes care of the building and rental management, investors are largely relieved of administrative tasks.

When evaluating a micro-apartment, the following factors play a decisive role:

• Location
• Furnishings of the apartment and communal facilities
• Amount of monthly service charges
• Internet connectivity
• Condition of the building (for existing properties)