Micro-Apartments, also called micro-flats, are one-room separate living spaces. Usually, they contain an area with a size between 28 and 48 sqm to sit, sleep, study or work, a small bathroom and pantry kitchen . In the property residents also have access to shared social facilities, on rare occasions even patio and roof garden.
This type of investments seems nowadays to be everybody’s darling. Even the German government wants to lower the pressure on the housing market in urban centers and invests to speed up innovations around micro apartments.
Purchase prices and rental prices correlate to a certain extent (while rents increase, sales prices increase and vice versa). If rental prices increase a certain number of people decides to rent smaller flats instead of moving to lower priced areas (often further out).
Especially older people tend to stay in the city, as they don’t want to depend on public transport or car. Students don’t even want to think about rural areas or the suburbs. On top there is a growing number of singles in most of the western world. In Berlin every second marriage gets divorced. More than 50% of all Berliners are singles, with a growing tendency.
The benefits of small flats are easy to understand:
- Small total rental amount, while the sqm-rental price is a good parameter to compare offers, what counts is if the overall sum is within the budget of possible tenants.
- Small side costs, because typically the unmeasured side costs are calculated by the size of the flat.
- Depending on the contract and the type of renter the turnover of a renter is, in general, much higher than with bigger apartments, this is better for the investor, as rent increase is limited with a sitting tenant. If there is a change in the tenant, the rent could be adapted to market rents more easily.
- Because of the size and the overall total rent and side costs, there is always a market because it will be one of the lowest offers on the market. This is only true if the supply of small apartments stays under the demand in this area.
- Small total investment size, therefore, it might be better to buy two micro apartments instead of one bigger on, as obviously the risk is spread on two renters.
The COCO HOUSE is a place where you can live, work, relax and socialize.
As an investment micro apartment solution up to 28 qm in urban locations or close to an important start up and technology, university, student, and start-up hub is an excellent decision from an investment point of view.
The roomy 28qm COCO HOUSE sets new standards in the intelligent use of space. As a living/working hybrid, it can be easily adjusted to become cozy, business-like or something in between. In a regular hotel room or studio apartment, the bed always dominates.
The Social Spaces are a great place to work, share a meal or meet kindred spirits
The COCO HOUSE are especially designed for those seeking a temporary residence for a couple of days and a few months. We’re all about combining comfort and efficiency for both work and socialize.
COCO HOUSE will be located in the world’s biggest and most creative cities, where they will be imbedded in, or near, the cool, interesting neighborhoods everyone’s talking about. We’ll be within cuddling distance of culture, entertainment, shops, entrepreneurship, start-ups, creative industry, etc. We’ll always be easy to reach.
