Major firms across Europe have recently announced investments in co-living, a modern form of house-sharing which has been popular in Europe. Could a co-living mini-boom in Europe be happening despite coronavirus?
Greystar Real Estate Partners, Ivanhoé Cambridge Holdings UK Ltd. and Bouwinvest Real Estate recently announced a joint venture to build out and buy out housing for young professionals in Paris. The venture is investing €1 billion (around $1 billion USD).
The companies didn’t announce any specific accession targets or plans for developments but said that they had a “significant pipeline of opportunities” in Paris, and they’re planning on acquiring in the coming months.
The joint venture will follow successful ventures across Europe, such as London, Berlin, Amsterdam and Vienna, that target young professionals, building and acquiring properties near public transportation stops and in areas with stable employment numbers and long-term rental housing demand.
Paris draws young professionals from across the world but is relatively supply-constrained when it comes to affordable living options to serve this market. This venture will help increase the supply of units targeting these young professionals.
Companies Investing in Co-Living Across Europe
Paris isn’t the only area where real estate developers are investing in new European co-living ventures.
CR Investment Management recently bought a large stake in a German-based co-living company, The Base. The Base operates co-living properties in Germany and other metropolitan centers across Europe. The company has bold expansion plans, aiming to open 15 new locations and a total of 5,000 units across Europe by 2025.
London-based Cynergy Bank recently offered a £6.4m loan to Studios24 in order to support one of London’s largest co-living developments, a 12 story building that can support 200 residents.
These investments across Europe are especially telling for the future of co-living, as they come during a period of extreme economic uncertainty brought about by the coronavirus pandemic. The co-living model promises reduced cost and increased flexibility for residents, which seems to be attractive for residents moving forward.