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If you think of the future, you think barrier-free.

INVESTMENTS IN BARRIER-FREE HOUSING

According to a raft of recent studies, a huge amount of new housing is required in Germany. But a host of bottlenecks exist – rising prices for development land, delays in zoning land for construction and limited capacity within the construction industry, to name just three – which means that it will be almost impossible to satisfy this demand in the near future. The Institute of Economic Research (IW) forecasts that around 400,000 new apartments need to be constructed if demand is to be satisfied.

 

Nevertheless, experience has taught us that the fundamentals of such forecasts can quickly change. For investors, it therefore makes sense to serve market segments that are set to thrive even if migration flows change and population figures drop. One such niche market is barrier-free housing, which should experience positive growth thanks to a range of advantageous factors. TERRAGON serves this market with its LIVING FOR ALL segment.

A MARKET SEGMENT WITH A FUTURE: LONG-TERM COMFORT

Barrier-free apartments have the distinct advantage that tenants stay in them for longer, because the physical limitations that often accompany the aging process do not necessarily mean that tenants are forced to move out. In fact, the design of such apartments actively takes such potential physical limitations into consideration. The characteristics of barrier-free apartments – wider doorways, for example, or level-entry showers and bathtubs – can also appeal to younger tenants, who associate them with the generous standards of modern housing construction, and appreciate the added home comfort they offer. As a result, the target clientele for barrier-free housing is actually larger than the market for regular apartments. On the whole, the likelihood of vacancies is also reduced.

 

In the newbuild sector, barrier-free housing only makes up a small proportion of completed apartments. The segment is therefore also an interesting option for investors who want to differentiate themselves from their competition.

WHY INVESTMENTS IN BARRIER-FREE HOUSING ARE SO LUCRATIVE:

  • Lower tenant fluctuation:  Tenants can stay in their apartments for longer as they grow older, as barrier-free apartments take account of the typical physical limitations that accompany the aging process.


  • Larger target clientele: Barrier-free apartments can be offered to senior citizens and those with disabilities – without excluding the option of marketing them to younger tenants and buyers.  


  • Future-proof:The concept of barrier-free housing will gain traction in the newbuild sector. In just a few years’ time, the lack of such features could be viewed negatively in the housing market.

WHAT INVESTORS NEED TO KNOW ABOUT BARRIER-FREE HOUSING:

  • The concept of barrier-free accessibility can only be consistently applied when the surrounding environment is also considered. The infrastructure required most by older citizens is a crucial factor for investors when they evaluate potential locations and project developments.

  • Barrier-free housing also needs to be affordable housing, which means that it is important to use optimized floor plans and layouts to minimize square-meter requirements and keep costs down, whilst also maintaining the highest standards of comfort and accessibility.

Barrier-free housing is a segment that requires specialized real estate development expertise. Otherwise, a great deal of potential may be overlooked. Where it is done well, the concept results in investments, which are tailored to modern, age-appropriate living that deliver attractive value-add potential.