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.