What's up DACH? How German, Austrian, and Swiss Cultural Values Evoke Minimalism and Sustainability in Student Living
The Class Foundation
A partner-based community shaping the vision for student living in Europe.
After several years of dynamic growth, the German, Austrian, and Swiss student housing markets have begun to level off. At the same time, the competition between them to attract first year students has risen. As these markets head towards maturity, they offer the rest of Europe some important lessons in sustainable development.?
1. We don't need to break the bank to save the planet.
Simple solutions can go a long way in minimising energy usage and reducing our ecological footprint. Take, for instance, the concept of passive housing. The idea here is to adapt architectural and construction practices to build structures that require minimal energy for heating or cooling. This can be achieved by designing more compact buildings with reduced surface area; windows oriented towards the equator; and super-insulated walls, roofs, and floors which significantly reduce heat loss. Other technical innovations such as storing geothermal energy, using ground water when available, and regenerating electricity on-site can help us to move beyond carbon neutrality –?towards being totally carbon free. Ultimately, the best instances of ESG-in-practice are supported by simple, affordable, and reliable systems that can adapt to changing energy demands.
2. Modularity matters!
We already know that communal spaces and amenities have a positive impact on student well-being – but what's the best way to design an offering that maximises this effect? The first step is to do more with less. Simple, clean furnishings don't go out of fashion and won't need to be replaced every few years. When brought together, they create flexible environments that can be adapted to multiple uses and functions. These modular spaces enable student residents to take ownership over organising their own events and activities (and managing the clean-up afterwards). When operators make room for students to express their individuality and autonomy, everyone wins... and when you combine creativity and a blank canvas, the possibilities are endless.
3. Let's reimagine our definition of scale.
Up until recently, investments in the German, Austrian, and Swiss student housing markets primarily targeted large cities such as Berlin, Vienna, and Zurich. Yet, as these cities got hit with soaring inflation, institutional and private investors began to pivot their attention towards mid-size cities such as Leipzig, Heidelberg, Innsbruck, and Bonn. Once overlooked, these locations are now seen as rising stars in the region's HE sphere, providing high quality education at a fraction of the cost. For many students – both domestic and international –?these up-and-coming university towns offer the opportunity to receive a reputable European degree without having to fork out so much on living expenses. Who wouldn't want that?
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4. We're moving from scarcity to abundance.
According to Savills, the private supply of student housing properties in Germany has almost quadrupled in the last ten years. We see similar (albeit less pronounced) trends in the Austrian and Swiss markets. Meanwhile, as the supply of accommodations has ballooned, the share of international students has seen moderate decreases in the wake of the pandemic. So what happens when supply outpaces demand and the region’s market dynamics shift in favour of students? For one thing, this will lead to increased competition between operators and their properties. We already see this manifesting in the shift away from transactional relationships between students and operators, towards a more service-based approach that takes into account each student's unique needs and circumstances.
5. The future is "Triple A".
While 'premium students'?can pay higher rent fees, this consumer segment is not inexhaustible. The sector must therefore focus on affordability, availability, and accessibility without compromising on quality and experience. Deepening social value is all about adding more seats to the table and investing in diversity, equity, and inclusion on the ground. There are any number of opportunities to provide low- and mid-range accommodation options in university cities across the DACH region, and as the supply of private housing properties steadily grows, so too does the stock for real estate investors looking to expand their portfolios.?
The style of minimalist design we see in the DACH region is affordable, sustainable, and adaptable. It empowers residents to take ownership and fulfills students’ needs without causing harm to the environment. Applying some of these principles to student accommodation planning, design, development, and operation has a compounding effect on social value, leading to stronger, more resilient communities for all.
Who are we?
These insights were gathered from The Class Foundation's first Regional Forum of 2022, which took place in Vienna on 6 April 2022 and covered the German, Austrian, and Swiss markets. The Class Foundation is a non-profit organisation founded in 2011 with the aim of helping the student living sector to attract and retain the brightest young minds. In promoting this mission, we hope to pave the way to social and economic success for university cities across Europe. Together with our industry-leading community, we set out to rethink the places where students live, work, and learn. We are focused on uniting both public and private stakeholders, such as HE institutes, PBSA providers, city and council leaders, and external suppliers to make student accommodation more affordable, accessible, and available in Europe.