T REND REPORT EDITION 2020 - CO-REVOLUTION BERLIN SPECIAL 2019
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ANNUAL
TREND
REPORT
EDITION 2020
The Future is Blended.
BERLIN SPECIAL 2019 CO-REVOLUTION
index
HIGHLIGHTS 2019 4
The Nido Difference Founder Column - Little did we know the Housing Crisis
had only just begun 8
The Future is Blended 10
Nido’s vision is to be the market
leading global advisor & operator BERLIN SPECIAL 12
of PBSA. Our strength is our people, A Beginner’s Guide to Coliving 21
we deliver best in class customer Global Trends in Shared Living 22
experience by creating & maintaining INTERVIEW - We blur Boundaries with a Concept that Sticks 26
tech enabled, sustainable communities
that maximise NOI for investors. Co-revolution 28
The Nido portfolio has developed from and then came Coliving... 30
2,000+ beds to a 10,000+ PBSA pipeline ONE SHARED HOUSE 2030 34
across the UK, Ireland, Portugal, the The Sharing Future 36
Netherlands and Germany. Here’s what INTERVIEW - Cities that Share 38
the Nido team can deliver for you: Generators across Generations 42
• Institutional-grade property and Education & Place 46
mobilisation management
The 8P’s to Cultivate a Great Place 48
• Opportunity identification and The Four Dimensional City 52
acquisition management INTERVIEW - STATION F Nurturing Talent 54
The Civic University 56
• Drive investment value through NOI INTERVIEW - The Perils, Promises and Potential
growth and accretive cap-ex of being a Digital Nomad 58
Balancing Acts 62
• Third-party operations through
scalable solutions Communities that care 64
• Planning, design and Smart Technology & PBSA 66
development management Re-humanising the University Experience 70
Urban Campuses: live, learn and work 72
The European University 74
THE FOUR PILLARS OF STUDENTS’ JOURNEY 76
Oh the Places you’ll go 80
Ambitions for a Collective approach to Coliving in Cities 82
MARKET UPDATES 83
Contact us Sustainable Relationships in Student Accommodation 107
Creating Spaces for Communities that Care 108
marketing@nidostudent.com Our Partners
www.nidostudent.com
2 TREND REPORT 2020 TREND REPORT 2020 3
HIGHLIGHTS 2018 HIGHLIGHTS 2018
Investment panel at The Class Conference 2018
MILAN 2018
The Blended Future Forward Thinking
of Living, Learning and
The Class Conference 2018 celebrated the
transformation of university cities: from
post-industrial city to the new urban campus.
Working in University-Cities Jullie Wager, keynote speaker, opened the
conference by addressing the birth of new
hybrid typologies. It became evident that
universities are the spark to creating local
and regional innovation ecosystems and the
re-make of the urban campus at the heart
We live and breathe our MANIFESTO. Our vision is for cities to attract and retain the brightest of the city is the ultimate mash-up of living,
working and learning. The conference also
young minds, and for them to lead the way to social and economic success in return.
served as a reminder that students lead the
way when it comes to housing preferences
Working together with our valued PARTNERS and values and social profits TOGETHER, through and securing their well-being is at the centre
of attention. Milan, the host city, showcased
other stakeholders, we advocate for community our Events, Research, Academy and Advisory.
strong commitment towards its continuous
collaboration and provide thought leadership on We thank you; our partners, thought-leaders, endeavours to global talent attraction
and retention with an active support and
university-cities. As a THINK TANK, we do not action-takers, industry experts, collaborators and
participation from the city municipality. With
settle for adapting to change. We strive to drive disruptors for all the discussions, developments, 650 attendees coming from 27+ countries,
strong presence of the higher education
evolution and revolution of the ways TALENT is changes, evolutions and revolutions in 2019.
industry and the many students involved,
living in cities and how this is shaping the urban THE CLASS OF 2020 invites you to the symbolic The Class Conference 2018 proved to be
the leader platform of shaping the future
campus; the ECOSYSTEM in which students, year of 2020. Our team of game-changers is ready.
of living, working and learning.
universities, corporates and cities co-create. Let’s continue the co-revolution.
We are a non-profit that aims to create shared Yoony Kim, Managing Director
Deputy Mayor for Urban Planning - Milan Julie Wagner keynote speech
TEAM PARTNERS
Game Changers Thank You Note
As a devoted believer and player of continuous With new partners joining and
learning of the global talents, The Class of 2020 existing partners strengthening
remained committed to growing together as a cooperative relationships, The
multi-cultural team of game changers. The team Class community propelled
also experienced changes in the size, composition the growth and maturity
of expertise and professional development. As a of the industry. We thank
result, we congratulated many who embarked upon you for sharing our passion
their new adventures and welcomed equally many and ambition and our
who joined the forces to drive further change. With continuous living, working
the big year of 2020 ahead, we are looking forward and learning together as a
to opening our new chapter together. purposeful community.
4 TREND REPORT 2020 TREND REPORT 2020 5
HIGHLIGHTS 2018 HIGHLIGHTS 2018
Regional trends, smart technology and
PBSA, rise of co-facts and co-effects
We are a think tank and research is one of
Learning continues the most essential everyday practice at The
ACADEMY RESEARCH
The Class dedicated the year 2019 to fully Class. It not only serves as the backbone of all
studing the needs and wants of the industry the activities we perform but also the driver
Next year we aim
that wishes to continue learning with us. As a think tank we put that proposes the most urgent, important
to launch a pan-
Not only did we investigate the areas to be research at the core of and relevant topics and agenda for our
European research on
improved and strengthened by professional our practice. It is where community. Our voluntary and commissioned
the impact of PBSA
training, but also the format in which The each seed is planted research on regional trends, smart technology
& ResLife on student
Class Academy can best and most benefit and cultivated before and PBSA, coliving, coworking and student
experience, in order to
the community’s continuous learning. We will blossoming into new accommodation are only a few examples
build evidence-based
keep you posted of The Class Academy but ideas and projects. Let of what we do and what we do best. The
insights that fuel our
please also keep us informed with your ideas, the harvest begin! Trend Report 2020 will provide you with a
inaugural Academy.
feedback and opinion on professionalising fuller picture of our dedication towards our
our community together. academic and applied research.
6 Regional Sessions and 7 Global Summits
The Future of Urban Living
The year 2019 has proven to be the record
Together with Berlin Partner for Business
year for The Class in geographical coverage.
and Technology and fifteen leaders from the
With 6 regional sessions within Europe
real estate, student accommodation and the
including the UK (pan-European), Spain, ADVISORY
urban planning sectors, The Class of 2020
Poland (CEE), Germany, The Netherlands
EVENTS conducted a series of in-depth interviews,
and Italy and 7 global summits in the urban We believe that attraction,
complimentary research and analysis to
cities outside of Europe including Singapore, growth and retention of
propose the outlook on the future of urban
Hong Kong, Shanghai, Sydney, Melbourne, young talent is vital to
The Class events are living and talent attraction. We believe that
Dubai and New York, we steepened our the future of cities. With
places to connect our in bringing experts together we can help
learning curve to the fullest. The topics that dedicated consulting
communities, bring organisations and cities develop positively,
were addressed during our regionals steered services, we help higher
actions to life and disseminating knowledge regarding housing,
and stimulated active conversations on the education institutions,
inspire as much as get regeneration and developing cities in a more
future of PBSA investments in a changing cities and economic
inspired by trends in sustainable direction. This century is called the
European landscape, home away from home: boards to shape the future
this emerging industry. ‘urban century’ and as more cities populate,
hospitality leading the way in PBSA, the rise of of global talent hubs.
new models of living are required in order
university cities in Central and Eastern Europe,
to ensure a bright future for all.
living the lifestyle: successful operators,
branding and generation rent, the city and
the campus: time to invest in talent and
housing generation Erasmus+. The year
concluded with the highlight, The European
Conference 2019: Blended Living in Berlin.
Of course, The Class did not miss any
opportunity to keep in touch with the wider
industry with representative participating
Left: New York Global
and/or speaking at events and conferences Summit 2019
such as MIPIM, NSBO, EAIE, The PIE Award, Middle picture left: Brian
Expo REAL, and Vastgoedjournaal congress Welsh CEO of Nido at PAN
EU Session in London
to name the few. Far left: Martina Bo of
Erasmus Student Network
at IT Session in Bologna
Top: View of Warsaw
during CEE Session
Middle picture right: Ulrike
Hagendorf of Catella during
DE Session in Frankfurt
6 TREND REPORT 2020 TREND REPORT 2020 7
Founder Column
Little did we know
the housing crisis had
only just begun
The Class of 2020 was established in 2011 in Amsterdam I am very proud of The Class team and partners who work
to fix the student housing crisis. Dutch universities were tirelessly to bring people together, to inform each other,
pioneering English Taught Programmes (ETPs) with an and who have transformed a local Dutch initiative into an
offering of English-language courses which was exactly what international think tank with a global impact. But as we enter
Millennial students had been waiting for. ETPs became an 2020, we need to ask, have we solved the housing crisis? No,
unprecedented success and international student numbers not yet. What we underestimated in 2011 was the pulling
started jumping by rates of up to 10% per year. power of university cities and Gen Z. Internationally an influx
of young talent, start-ups and new jobs are boosting demand
But where and how could they be housed? No one knew the and prices are rising as a result. As it turns out, Millennial
answer. The Dutch student housing market was deadlocked. students have only been the trailblazers of talent mobility.
The subsidised operators were overburdened by the extra Gen Z is moving around even more often for study, work,
demand, and overregulation and a global financial crisis had friendship and love.
scared away new investors. So, the idea of The Class was
simple: to bring together public and private stakeholders So, with what we know, what will end the housing crisis?
to find new solutions for a shared goal, that no student We have to accept that our cities will grow, and that our
should have any problem finding good-quality housing in communities will diversify. We need to redevelop, regenerate
2020. The strategy was three-fold: to challenge the status and densify the underutilised areas of our cities. We need
quo with new ideas and insights from around the globe, to to understand that people, young and old, are willing to
bring new and existing operators together with universities sacrifice square metres for proximity, affordability and
and regulators, and to commit the stakeholders to work quality of spaces and services. Our recent summit in New
together for change. York highlighted that coliving communities offer members
20% lower [1] prices than a regular studio apartment would
In the past nine years, we did what we promised. The Class has cost. Getting together and building urban campuses,
connected passionate professionals, educated the industry lively, inclusive and mixed-use neighbourhoods, with
and inspired new ideas and collaborations around Europe good transportation will be key to accommodate the next
and beyond. Governments have changed their regulations generations of students and young professionals. That is
and new players have entered the market. The private and what the partners and network of The Class can do together.
social sector have built thousands of rooms. Innovations like Now and moving forward towards our graduation in 2020 [1] Knight Frank - Coliving, Rent a
coliving, coworking, hybrids and intergenerational housing and beyond, we look forward to further collaboration as a Lifestyle, Research 2018
have won the hearts of students and young professionals united community.
alike. Smarter designs, technology and flexible contracts
have allowed for greater variety of lifestyles and budgets. Frank Uffen
8 TREND REPORT 2020 TREND REPORT 2020 9
The Future
is Blended
New terms regularly emerge in our fast-changing and
urbanising world to describe new ways of living. The theme
of this report, Blended Living, leads the way in discussing
the various blends that modern living includes. Innovative
models which provide high quality living, working and learning
environments, utilising technology and the sharing economy
are creating new investment and development opportunities,
and pave the way in making a positive contribution to a
more sustainable urban future. A highlight of our report is
our advisory project which focuses on talent attraction and
housing in Berlin – the host city of our annual conference
this year. As many cities around the world are experiencing
a housing crisis, multiple options are required and shared
living models such as coliving make a valuable contribution
to this mix – assisting with the movement of talent, providing
employers with skills, and addressing loneliness. Shared living
projects can provide a desirable alternative to traditional
housing, often with comfort, convenience, flexibility and
community at their heart. In our transient world skills and
talent head in the direction of opportunities and we need
new housing models to support that.
Ryan Manton
Programme Director
10 TREND REPORT 2020 TREND REPORT 2020 11
BERLIN
SPECIAL
Our advisory project brought together
experts to discuss Berlin’s future
c o n t ex t
At The Class of 2020, we have found that a
number of characteristics combine to determine
city performance in the intensifying global
competition for talent. Student experience,
affordability, city life, social inclusivity, urban
environment and connectivity blend to determine
how well European cities first attract and then
retain the best and brightest. In 2018 we ranked
Europe’s student cities across 35 indicators.
Berlin, with its international flair, unparalleled
social offerings, high-ranking universities and
relative affordability rose to the top as our
first-place pick. In the year since, rising rental
costs have threatened affordability as the
linchpin of Berlin’s appeal to young people. At
the same time, new mixed-use developments
and propositions for innovation districts with
leading institutions and universities at their
core position Berlin as a potential beacon for
the very future of urban living.
Recognising the unique combination of legacy,
BERLIN FIGURES
BERLIN SPECIAL
opportunity and challenges Berlin has in P A RTICIPA N T S G U N T H E R S C H M I DT
maintaining its status as a talent powerhouse,
Medici Living Group NIELS BERL The
we partnered with Berlin Partner for Business and
314,100
Technology to gather perspectives on the role Collective LEON BOBBE De Key CHARLIE 298,100 8.69%
of urban development in talent attraction and Total population [2019]
3,644,800 8.25% of total
MACGREGOR The Student Hotel FLORIAN of total
retention. We connected with fifteen individuals
with insider knowledge of everything from FÄRBER theBASE VALERIE BENSIEK GSA Projection for 2030 [2016]
3.828M (5.02%)
expanding a coliving brand internationally to 182,800
FRISO GARBERS Primevest ANIL KHER A 5.06%
the living communities students and young % of Berliners renting 85% of total
professionals are looking for to developing smart node ERICA ANCOBIA FinLeap SAVANNAH
districts. Through a series of semi-structured Total housing stock Berlin 1,949,252 units
DE SAVARY Built-ID THOMAS LEBINGER 58,400
interviews, we explored how real estate investors,
1.62%
PBSA providers, coliving experts, entrepreneurs OE AD Vienna DR. PHILIPP BOUTEILLER Young people [AGE 18-34]
853,000 (23.61% of total)
of total
and employers approach the affordability issue,
Tegel Projekt SEBASTIAN MELCHERT Housy
living typologies, community connection and Students in Berlin [2018 fall] 192,192
local planning policy. Participants in this research R AINER NONNENGAESSER International
will engage in dialogues with other industry International population [2018] 675,200 18-19 20-24 25-29 30-34
Campus JON AT H A N B U R ROWS A S K4
leaders throughout The Class Conference with
the aim of driving talent-friendly policy in The SOURCES: Berlin Stadtentwicklung, Statistik Berlin-Brandenburg
Best Student City.
12 TREND REPORT 2020 TREND REPORT 2020 13
1. 0 BERLIN SPECIA L
1.1
Berlin’s success may be its biggest problem of housing ever to take place in the city. The Within Berlin (and indeed
Following the fall of the wall, Berlin emerged goal is to keep rents low. Most participants the German market)
as a free-spirited mecca for young talent agreed that the state has a role to play in construction costs have
THE NEW from around the world. A city packed with providing social renting options. But nearly risen significantly over
vacant buildings and cheap apartments where all added that the public sector alone cannot the last 10 years which
artists, students and young entrepreneurs achieve the increase in units and the variety will inevitably result in a
BERLIN had no fears about finding an affordable of options necessary for Berlin’s blend. slowdown in development
place to live. Jobs were not as plentiful, but further exacerbating the
Berlin’s former mayor Klaus Wowereit made Achieving a good mix undersupply of housing
its weakness its strength, luring creative Our interviews painted a renter landscape
Once poor but sexy, Berlin’s success
types to the city by saying “Berlin ist arm, more nuanced than typically represented in —Niels Berl
may be its biggest problem aber sexy” (poor but sexy). Today’s city discussions of Berlin. Opportunities to remove
leadership finds itself playing in a different pressure on existing stock exist in purpose-
league - Amsterdam, Barcelona, London and built options for those with various rental
Lisbon are experiencing an influx of talent needs. In Amsterdam, housing corporation
coupled with new forces of gentrification. De Key invests in stock to rent affordably to
As prices rise and newspapers declare a young people. When you don’t have housing
housing crisis, city councils attempt to curb for the middle sector, Leon Bobbe asserts,
Population Increase
the changes with extreme measures such as young people occupy much needed spaces NEON WOOD
rent freezes and anti-tourism policies. in affordable stock. BERLIN
Erica Ancobia says the biggest challenge STUDENT HOUSING
50%
The battle for urban living spaces as a recruiter is not in securing rental ac- Neon Wood, a brand of GSA
The Berlin dynamic has intensified partially, commodation young employees can afford,
Rent Price Increase
has two locations in Berlin. It
40% Friso Garbers contends, due to polarised but convincing them that Mitte and Kreuzberg is active in 36 global cities.
groups seeking urban living spaces. He are not the only neighbourhoods. Indeed, GSA has stated ambitions
observes distinct competitors for space - many agreed that certain renters tend to to expand further in Ireland
30%
international students, young professional look for options that are—in one word— (5,000 beds in the next 5
start-up employees and entrepreneurs come Instagrammable. Current coliving brands years), Germany (10,000
20% to the city looking for relatively short leases, serve this demographic well, with thoughtfully beds in the coming year) and
where they are met with those renters who designed shared spaces. Integrating coliving Asia Pacific region (25,000
have been living in the city for years or in nodes outside central areas with good beds). Their vision is to
London 10% generations on average incomes. The average transport connections and excellent amenities have 250,000 beds under
Barcelona Amsterdam
Berlin Vienna
share of their income Berliners spent on will be crucial. And the fastest growing group management by 2025.
rent in 2018 was 28%, above most German for the future? Seniors, Florian Färber from
2% 4% 6% 8% 10% cities. Compare this with London’s 58% rent theBASE argues. Efficiently integrating them
12% burden in that same year and understand in the mix also remains an opportunity.
that despite the hype the situation in Berlin Solutions to land and construction costs
LIEVEN BY DE KEY
may not yet meet the urgency of other cities begin with maximising the use of space to
8%
1,200 RENTAL UNITS
in a housing crisis. match current demographic and lifestyle
THE NETHERLANDS
Despite this, achieving the quantity and variety trends and designing for future flexibility.
Increase of monthly rent by m 2
of rental options needed remains crucial to And there’s always up – Germany’s height
4% The non-profit Dutch housing association, De Key, Berlin’s long-term success. This is difficult restriction, Traufhöhe, stipulates that the
has more than 37,000 rental units in Amsterdam, given construction and land costs - both of standard height for a residential building be BERLIN SPECIAL SOURCES—
Diemen and Zandvoort. Their latest project, Lieven, which have increased significantly in the past 22 metres, which could be carefully managed AirDNA, BCN.cat, Berlin Stadten-
has 1,200 ‘home starters’ including students, job ten years, according to Valerie Bensiek. The to accommodate a rising population as has twicklung, Berliner Morgenpost,
0%
seekers, artists and young people aged 18 to 27. effect has been the positioning of most new been done in other cities. The mainstream use Centraal Bureau voor Statistiek,
C&W, Forbes, Immowelt, Moovit
De Key gives the opportunity for young people builds at the higher end of the market, leaving of mass industrialised timber is a promising
Insights, Office for National
to take their first steps in the housing market, by the middle sector underserved. Berlin’s durable, renewable and cost-effective solution
-4% Statistics, Pararius, Social Market
renting stock and leasing it out at affordable rates. state-owned housing company, Gewobag, to material costs, Dr. Philip Bouteiller points Foundation, Statista, Statistik.at,
recently repurchased 6,000 apartments out. Overall, Berlin’s future remains bright, Statistik Berlin-Brandenburg, Sta-
built for social housing in Berlin from the especially if it embraces the significant tistisches Bundesamt Deutschland,
-6% 1960s to the 1990s at a cost of almost 920 opportunities to spearhead innovative der Tagesspiegel, Valuation Office
2012 2013 2014 2015 2016 2017 2018
million Euros, the largest renationalization approaches to urban living. Agency
14 TREND REPORT 2020 TREND REPORT 2020 15
2.0 BERLIN SPECIA L
2 .1
transformed into new urban districts which
can support start-ups in creating innovation
districts – a new model of campus which is
not just about learning, but about enterprise
and innovation. These innovation districts
can be new models for living, working and
learning with a range of accommodation
JOINING
typologies and social facilities included in
their masterplans. New projects such as
Berlin TXL – a project to transform Berlin’s
THE DOTS Tegel Airport after closure will provide 211
hectares of project area available to around
1,000 companies. It’s CEO Dr. Philip Bouteiller SIEMENSSTADT 2.0
explained that although the project has huge +600M INVESTMENT
70 HECTARES
Connecting communities in start-up cities benefits for attracting talent and spurring on
innovative companies, it is also a sustainable
development reusing existing buildings
Siemens AG is planning a new start-up campus
and bringing them up to standard – no cars
in Berlin. Siemensstadt 2.0 will invest up to €600
are intended for the district and therefore
million in the coming years. It aims to transform
City nodes infrastructure will be important. Thomas
this large industrial area into a modern, urban
In many European cities, the pace of re- more commuting options, similarly to London There is a huge chance to Lebinger believes cities need to have much
district of the future to make the area more livable.
generation in city centers in recent years or New York when people are thought to develop Berlin into a place more sharing, as people do not need to own
has been gaining traction – especially in be more used to commuting. As Sebastian with sufficient living space everything – cities will change in big ways
previously derelict or industrial areas such Melchert from Housy highlighted, mobility when the dependence on cars is reduced.
— Rainer Nonnengaesser
as Wedding in Berlin, or Stratford in London is key and it is essential that if people do Valerie Bensiek quotes car ownership with
and although many housing developers see commute from new city districts then good young people diminishing.
investing in these areas a reliable option, new transport and other infrastructure is needed.
city nodes are being created outside the city New city districts such as start-up campuses
BERLIN TXL
centers which have potential to develop new In a study by The University of the West of have an opportunity to not only introduce
THE URBAN TECH
sustainable communities with good access England, researchers found that people are new models of living, working and learning
REPUBLIC
to transport. New housing models such as happy to commute up to 45 minutes. If density but also improve sustainability credentials
5.000 NEW APARTMENTS
coliving can make good use of currently through new developments increases in new and new technologies through working with
underutilised areas – often on the fringes city nodes, then there is the opportunity the sharing economy, the circular economy
of the city, especially when residents have a for coworking spaces and other work units and cradle to cradle design as Leon Bobbe The Berlin-Tegel airport is set to close and be
community on-site and employment nearby to increase, providing an alternative to suggests. Digital infrastructure is vital to new converted to create a research and industrial
which only requires them to travel to the center commuting to other areas of the city for work start-up campuses integrated in buildings park for urban technologies. A new housing
of town occasionally, when the need permits. or study. According to a recent study carried from the start of refurbishment or construction project, Schumacher Quarter will provide more
With regards to Berlin, already a polycentric out among professionals employed at the In the past few years we – Jonathan Burrows notes that, with regards than 5,000 new apartments to fill the shortage at
city, this type of development reduces stress Science and Technology Park Berlin Adlershof, have seen sustainability to students, a reliable internet connection Kurt-Schumacher-Platz and provide the necessary
on infrastructure and can also assist with nearly 60% of commuters experienced their become more important to is a necessity for residents and a key part housing for talent working within Berlin TXL.
spurring on new development of all types in commute as quite taxing to extremely taxing. students. I don’t know if it’s of preserving the long-term value of multi-
these developing areas helping to improve This number is a steep increase from the because it’s fashionable tenanted buildings. If innovation is to thrive in
local economies. In the long-term, new German average (which lies at 30.9%) and to be green, but they will new urban districts, then talent attraction and
city nodes rely on good transport planning may partially be explained by Berlin and choose the ecological retention is key and proving suitable housing
sometimes known as TOD’s – Transport Brandenburg’s public transport systems, building over the others. in these areas is required. Savannah de Savary
Orientated Developments, which maximise which have been criticised for being severely believes having affordable housing close
the amount of residential, business and underequipped to handle the large number —Thomas Lebinger to where you work is incredibly important
leisure density within walking distance of of commuters. to attract and retain talent and coliving is
a transport hub often located outside of a way to do this. Temporary housing stock
city centers. Friso Garbers from Primevest The start-up city is also important to new districts where
believes that the challenge with regards to There has been a growing movement in flexibility is key - Leon Bobbe suggests that
Berlin is to harmonise infrastructure in Berlin recent years that redundant areas of cities 20% of housing stock should be allocated
and Brandenburg together to give people or disused buildings of good quality can be for temporary use in cities.
16 TREND REPORT 2020 TREND REPORT 2020 17
3.0 BERLIN SPECIA L
3 .1
UNDER
Is Coliving the Future of Urban Living?
In cities around the world, shifts in lifestyles
THE COLLECTIVE
and habits are challenging the traditional
ONE
CANARY WHARF
housing preferences in which urbanites
705 BEDS
reside. When discussing the opportunities
300 EMPLOYEES
ROOF
for new shared urban living models with
$800M FUNDING
advisory experts, coliving stands as a solid
contender. It is evident that this surge of new
coliving concepts is driven by urbanization The Collective's 705-bed Canary Wharf is currently
and affordability - between 2009 and 2018, the largest operating coliving development, and a
As coliving gains momentum, net migrations into Berlin have increased by key component of The Collective’s global expansion
how can our future be shared? almost 180%. Savannah de Savary questions plans. With over $800 million funding, the company
if the lifestyle shift of millennials is due to expects to develop at least 6500 new units over
their general preference for experiences the upcoming years. The team is targeting 300
over ownership, or rather a necessity due employees by end of 2019 and offices have
to unaffordability. In the last 10 years rent in expanded to New York and Berlin.
Berlin has risen significantly and considering
these dispositions, coliving industry leaders
like Gunther Schmidt consider coliving a
form of needed housing.
Distinguishing Demographics renovation of an existing one - architecture One of the reasons
Berlin’s vibrant culture and geographic brings people together. Well-designed spaces The Student Hotel is
location contribute to a quality environment can be rearranged easily, providing multiple successful is that all of
for multiple demographics to thrive. However, purposes throughout the day. With these our spaces are used by
without flexible housing that is adapting to factors in mind, a coliving community will different groups at all Quarters is a coliving brand of Medici Living Group.
modern lifestyle shifts, some demographics likely not blossom without first selecting the times of the day so it really The coliving company has a live portfolio of around
are being pushed out of the city. Friso Garbers right location. Coliving spaces can contribute adds value to the property, 3,000 bedrooms and a pipeline growing to 10,000
identifies two main groups who would benefit to urban regeneration; however, proximity the business and the in 2019. Quarters have raised $1.4billion in the
most from coliving; young professionals and to amenities and transit pose ‘make or break’ community last 9-months to expand their portfolio across
“ordinary” Berliners that have been living factors. North America and Europe. Currently, Quarters
there for multiple generations. Florian Färber — Charlie MacGregor are targeting 40 cities in 15 countries.
notes that overall, the largest demographic Branding in Coliving
is seniors. Common needs and desires Diverse markets may have different per-
QUARTERS
between demographics can be accessible ceptions of coliving, and that’s where branding
800 BEDROOMS
through intergenerational coliving models. stands out the most. Anil Khera shares
40 CITIES
Whether people want to share their living a great example, when Node opened in
NORTH AMERICA
space with multiple demographics is up to Dublin, no one had ever seen any type of
& EUROPE
them. Some people like to be with cohorts a coliving concept. Educating people on
of their age group, some people like mixing, coliving, referencing how their model has
TSH BERLIN explains Anil Khera. worked internationally, for example, gave
5,174 ROOMS IN people comfort that the concept has worked
13 LOCATIONS One Size Does Not Fit All somewhere else. Savannah de Savary believes
I think there’s precedence The lack of available space in cities provides branding can go a long way in helping to
The Student Hotel has a unique business model for different people for developers an exciting challenge to get change the perception of what success looks
that blends student housing, coliving and hotel different reasons. We creative with compact design and the multi- like - a good brand is trustworthy and can
stays under one roof. The developer, investor and should be embracing all functionality of a space. Gunther Schmidt says clarify misconceptions. In addition, there is an
operator has 5,174 rooms in 13 locations including: of them the easiest way to achieve flexible spaces increasing number of operators in the market
Berlin, Florence, Amsterdam, Paris, and two TSH is to bring together a really good creative right now. Valerie Bensiek suggests being
Campus sites in Barcelona. — Anil Khera team; people who understand human needs clear on your offerings, create meaningful
and can then conceptualise multifunctional content and provide brand orientation so
spaces that cater for the needs of a community. that your target group knows exactly where
Whether in a purpose-built building or in the to go and where to book if they choose to.
18 TREND REPORT 2020 TREND REPORT 2020 194. 0 BERLIN SPECIA L
Determining Rates & Minimums
Coliving: You’ve seen Situate your space competitively based
on what else is out there and the type of
the term before.
CRAFTING You’ve heard all the
environment you are looking to create. Ask
yourself: Is this intended to be a short-term
CITIES
space with digital nomads cycling in and out?
Or is it more permanent with longer-staying
excitement. members who cultivate a very personal
community? Whichever you choose, this
Maybe you’ve even will determine the essence of the space and
The art of city leadership – considered breaking type of pricing/duration model you need to
implement. One valuable way to price your
a toolbox for mayors home advantageously is to take a look at
into the industry… the average stay. This will tell you what your
target market is actually doing in the space
and how to set your limits accordingly.
Restrictions & Limitations
Embrace temporary and flexible rental options:
Encourage collaboration at the heart of the planning For those who are looking to find success
process: New housing developments including coliving and Depending on where you are in the world,
in the market, either by starting your own
1. 6.
Housing with flexible contracts and fully equipped spaces
micro living require streamlined planning processes which different localities may place restrictions
allows talent to be flexible responding to changes in role,
enable effective collaboration between all stakeholders to
coliving space from scratch, investing, or
company, school or location. Younger generations who on real estate that can impact your coliving
ensure the financial, legal and social requirements deliver joining a team, here’s your beginner’s guide.
embrace the sharing economy have created opportunities
a viable and sustainable project.
THE FUTURE operation. This does not mean that you can’t
for shared living concepts such as coliving. IS BLENDED still run a thriving and profitable coliving
business if they are present, all you have
Categorization to do is know these rules and tweak your
A
Free-up underused land: The release of redundant Ensure transport infrastructure connect new districts: Coliving takes many forms across the world— operations to accommodate them. In fact,
2. 7.
public land and development of brownfield sites provides New districts should ensure node points include transport
that’s one of the reasons it’s so popular. To a considerable amount of coliving spaces
opportunities for denser urban environments. Public interchanges planned from the start. High-density shared
agencies can use the sale of land as an opportunity to housing developments that are located in new districts but find out where your vision fits in, consider fall under these— over 26% are bound by
include new models of affordable housing which will close to transit hubs allow residents to easily commute what type of home you are looking to create. Maximum Occupancy standards, and more
develop into sustainable places. throughout the city if required. Generally speaking, there are about seven than 23% must have a minimum stay of 30
broad groups that coliving properties fall
into, which will dictate your next steps in
Beginner’s days. Don’t be daunted by these factors,
they are completely workable but essential
Guide to
Make affordability a priority: Talent attraction and Develop mixed use neighborhoods: Districts where terms of how the home will take shape. While to know.
3. 8.
retention in cities relies on the provision of affordable inhabitants live, work and learn together can both drive
accommodation and access to social communities. If innovation and create vibrant sustainable communities.
the majority of coliving spaces at this time
young talent cannot find appropriate accommodation,
they will either occupy existing affordable stock or leave
Innovation hubs can be supported through collaborating
with universities and research institutions and zoning for
either offer individual units or rooms, it’s up
to you to figure out whether you want shared
Coliving Get Noticed
The coliving market is massive— that’s one
cities for better alternatives. a mix of uses and housing typologies. rooms, pods, entire apartment formats, or of the reasons it’s so successful and high-
something different. Get comfortable with by demand. But that also means there’s more
what these definitions and distinctions mean, Christine McDannell, competition to be seen. Based on this study,
Review policies that limit design innovation: Policies Manage height restrictions in context: The location,
because they’ll be used frequently. Co-Founder the majority of coliving operations are using
4. 9.
related to estimated size requirements for accommodation uses, heritage and strategic master planning of an area
could be adjusted to better fit current demographic trends should be taken into consideration when height restrictions of Kndrd rudimentary approaches to generate leads
in terms of resident composition, advancements in design are examined. Besides increased housing, higher density Know Your Competition and bookings. With this information, you
and technology and an increased appetite for shared developments can help to knit together city form and In order to stand out as a coliving operator, can tap into the lesser-used areas such as
innovative spaces and amenities. regenerate districts if appropriate infrastructure is included. you want to know what you’re up against social media and SEO to make outreach
and which ones you aspire to emulate. Take I nve s t me really count.
a look at who’s doing well in the industry n
Support the development and use of new construction
ts
Adopt a 24-hour view of the city: Maximise the use techniques: Innovations in materials and processes have and use them as inspiration for your own With all these basics, you should feel confident
+2
in t o
5. 10.
of space in the city by organising the use of facilities huge potential to reduce construction costs and drive space. The more you observe others in your $ about where the coliving industry stands, how
c oli v ing
by different user groups at different points in the day. up sustainability credentials, increasing longevity and domain, the less trial and error you have to to situate your space within it, and how to
Technology and good design can assist with sharing reducing the amount of maintenance. New innovation Billion
do on your own. For example, assessing the get set up. This is the confusion-free guide
spaces and facilities that are adaptable for different needs. districts should provide opportunities for testing and
most common operator needs can tell you to becoming a true pillar of the space— and
in
improving construction methods. : the
where the best space is to enter the industry. pa s t year now you’re on your way.
20 TREND REPORT 2020 TREND REPORT 2020 21ASIA OUTLOOK
The Asia market is developing rapidly. Lines
between coliving, PBSA, serviced apartments
and similar living typologies are blurring.
As these lifestyle concepts blend, cost
and length of stay are becoming the key
differentiating factors. Singapore’s advanced
infrastructure has potential for growth across
asset segments. Strict housing policies in
Singapore often make it difficult to develop
flexible housing typologies. This can hinder
possibilities for short stay urban living for
Gen-Z and retaining talent in the city.
In addition, technology is playing a key role
in Asian market development. A majority of
students are booking their accommodation
online. brand’s digital image and reviews
are critical. Operators are also tapping Studio view from HMLET in Sydney
Upscale design is a paramount at Cohost West Bund, attracting design enthusiasts from around the world into technology. Technologies such as
VR and AR are being utilised for a more
Hospitality moving effective booking and pre-arrival and arrival
THE FUTURE into the coliving processes. Locational data analytics are units are under development bringing
IS BLENDED providing powerful information on a user’s their total of more than 101,000 units over
scene is a trend experience within a space. In order to make 680 properties. Ascott is a wholly owned
the most efficient use of space in small subsidiary of CapitaLand Limited.
we’re following.
Global Trends This year marks a milestone for
It makes sense
urban dwellings, operators are seeking
smart design concepts and testing these HONG KONG // THE NATE
in Shared Living
concepts carefully in multiple cities around With Hong Kong’s limited urban living space,
The Class of 2020. We embarked
– the industry is the world. In comparison to Singapore and The Nate brilliantly showcases stylish, serviced
on an explorative tour to uncover
already successfully Hong Kong, limited space is not a barrier in micro apartments in the heart of Tsim Sha
Shanghai. Therefore, operators and investors Tsui, Kowloon. The Nate is part of a larger
by Kristen Zupancic, Innovation Catalyst, The Class of 2020
global trends and best practice in
accommodating are seizing the opportunity to get creative project by District-15, a Hong Kong developer
coliving, student accommodation
short-stays, so with innovative design in new living concepts. aiming to enrich neighborhoods with creative
Biggest challenge in Asia? Getting your urban real estate. These smart, compact
and hybrid living models. Mobile
why not longer? product to scale, especially if you want rooms provide ample comforts and plenty
to own the asset. That’s why investors are of storage space (i.e. built in storage units
students and young professionals
looking into surrounding countries like Japan and hidden, pull-out desks). Communal
have driven demand for hybrid living and India. areas include a full-size kitchen with multiple
appliances so that many residents can cook
spaces and PBSA. This sparked our Visit at Scape in Melbo Site visit to
Scape Swanston in Melbourne SINGAPORE // LYF BY ASCOTT their own meals, alone and together.
interest to visit sites around the Located within the SMU Campus, we visited
Ascott’s first-ever living lab for their new SHANGHAI // COHOST WEST BUND
globe to facilitate further discussion
coliving concept. Geared toward millennials, Designed for the global nomad, Cohost is
and debate shaping the future of feedback from students using the space a paradise of sophistication. There are 66
helped shape the brand and future of Lyf chic lofts that come in multiple sizes to meet
coliving and student accommodation
by Ascott locations across Asia. Lyf’s Funan varied needs and multiple communal spaces
in emerging markets. Save yourself location recently opened with 412 rooms offering optimal room to work and socialise.
across 121,000 square feet in gross floor Partnering with local businesses, Cohost
from the jetlag as we share with
area across 9 stories. Ascott Limited is a West Bund elevates the resident experience
you the highlights and key insights Singapore company with a portfolio across while minimising operational costs, even
170 cities over 30 countries in Asia Pacific, with its modern gym and swimming pool.
from our stops in Asia, Australia,
The Nate’s bright and spacious communal area is the meeting spot for 71 Europe, Middle East, Africa and the US. This is the first Cohost project, and another
serviced studio residents. Dubai and the United States. They operate 59,000 units and over 42,000 one is set to open soon.
22 TREND REPORT 2020 TREND REPORT 2020 23AUSTRALIA OUTLOOK HMLET the planning process. Regarding student
In Sydney, demand for PBSA remains con- Hmlet’s Newtown location launched this wellbeing, we found it was situated as up
sistently high. Distinguishing features reflect past May. To enrich synergy, prospective to the operators to provide. Specialised
providers taking proactive steps to address residents do a personality test to see if living staff training, community programs and
issues of student finances and wellbeing, in Hmlet’s coliving space is a right fit for them. medical support should be standard. Given
drawing on framework examples in the UK This curation has led to a pleasant mix of Dubai’s city layout, proximity of PBSA to
and US. Student-centric developments are personalities that contribute to Hmlet’s vibrant universities is key. It is almost essential for
providing the for new coliving concepts to community. The company raised A$55m the student accommodation to be walking
cater to post-university cohorts. Melbourne in series B funds to expand in Australia & distance from the school or reliable transport
has the highest number of students and the Asia-Pacific. With additional locations across must be arranged. Internationalization and
largest number of developments. If all of the Australia, Singapore and Hong Kong we look Dubai’s recent 5-year visa extension make a
accommodation within the supply pipeline forward to watch Hmlet grow. solid argument for student accommodation
is delivered, the existing provision of circa investment and new living concepts like
6.0% may increase towards 6.8% in 2020 UKO coliving.
and 9.0% in 2025 (Savills). Coined “Australia’s first coliving space,”
Sydney is an attractive market for investment UKO has two locations up and running and UNINEST
due to the imbalance of supply and demand. a third opening soon. With Murphy beds and Uninest Dubailand highlights how an inter-
Affordability issues pose opportunities hidden storage space, UKO impressed with national PBSA brand adapts their design to
for coliving and student accommodation compact features in each loft. The converted appeal to cultural preferences. Uninest, a
operators to fill rooms; however, poor Paddington location, which has 26 studios, brand of GSA, emphasises their commitment
planning and untimely contractors pose is designed to mimic the neighborhood’s to student wellbeing, with specialised training
material risks to the quality of PBSA and upscale surroundings, while other UKO Iglu Redfern’s outdoor programs for staff. The Uninest location
coliving supply. locations took on the unique characteristics communal space is a favorite in Dubai is situated in University City, the
spot for weekly social gatherings
Overall, demand and strong international of their environment. Every loft is varied in area where multiple prominent universities
student numbers, nearly 700,000 now and design, which made it a stand-out amongst reside, including SP Jain School of Global
set to reach 720k by 2025. The market is other coliving spaces. Management and Birla Institute of Technology
conscious Australia is experiencing a market & Science Pilani.
delay due to unsophisticated pension funds, MELBOURNE // SCAPE
more money being allocated overseas and Scape showcases efforts to shape PBSA AMERICA OUTLOOK
the unpopularity to travel within cities in beyond student housing and into the urban With a firm history of student accommodation,
Australia. Investors are interested in new regeneration of an entire city block at their our focus in the US was on the emergence and
living concepts such as coliving, but are first Swanston and Franklin locations. Scape development of coliving and alternative living
looking for reliability of returns, operational has blurred the lines of traditional PBSA typologies in cities. As our panelists noted,
quality, and both ups and downs in terms of with mixed-use ecosystems such as retail, this is coliving’s moment in time. Pressure
supply. There is opportunity for competitors coworking and coliving spaces. This blend on supply and persistent over demand for
Lounge area at WeLive in NYC
to work together to address the planning and deeper integration with city living leads densifying cities has resulted in high levels
challenges in Australia; starting with a clearer to the creation of Melbourne’s urban campus, of demand, concerns for affordability and
definition of PBSA and coliving. a hotbed for talent and coliving. sustainable city development. Like PBSA,
coliving concepts are being positioned as non-
SYDNEY // IGLU DUBAI OUTLOOK cyclical, recession resilient and attractive for
With fully-furnished apartments, stylish Accommodation for students in Dubai is We see student young professionals looking for an intentional Top: HMLET in Sydney brings comfort, community
communal (indoor and outdoor) spaces, still in an emergent stage. International community environment where they can be and connection together at their shared dining area
housing as a critical Bottom: Cohost’s spacious lofts provide tenants
shared amenities and a welcoming environ- student numbers almost double local student together and alone. with a private sanctuary, including a full living room,
ment, it’s no wonder why Iglu is favored counts with 36,757 non-Emirati enrolled in element to urban bedroom, kitchenette, bathroom and study space
amongst local and international students. tertiary education as of 2017/2018. Providers NEW YORK // WELIVE
regeneration; it
Iglu offers an abundance of dedicated are studying the innovation and learning We experienced WeLive’s coliving concept
spaces to study and socialise. In classic pathways from experienced European is a hub for talent first-hand while visiting for our New York City
Australian style, weekly BBQ socials are a investors, developers and operators. Key Global Summit. Part-coliving space, part-
attraction, while
popular community activity. Iglu has nine to providers is to be sensitive to cultural hotel includes small communal kitchens on
locations across Brisbane, Melbourne and issues and to take account of cultural coliving models every floor, with additional floors dedicated
Sydney – offering students more than just a considerations before, during and after to extra-large communal space. WeLive is
can retain talent
place to live, but a vibrant community that development. Providers should get creative part of The We Company, and a natural
supports international talent. with design and involve the students in in the city extension of their coworking model, WeWork.
24 TREND REPORT 2020 TREND REPORT 2020 25granted. We are genuinely seen as a
INTERVIEW company that attracts new talent to
a city. I’ve been in planning meetings
THE STUDENT HOTEL where planners said that our hotels
are what cities need. It’s because we
We blur boundaries with
have come in with regeneration tools,
we are an owner/operator who bring
mixed-use parties to the project
a concept that sticks and offer a refreshing concept
that attracts talented individuals.
Charlie McGregor of The Student Hotel explains the power of
creating vibrant living-working environments for students and What we’re looking for is
young professionals. He explores how TSH focuses on hospitality
the stickiness factor…our
and community life in its mixed-use development model.
spaces need to be vibrant
This report was made possible What do you see as the key What do you see as a key area opportunities in other Spanish How does your team approach
with the support of: for growth and development cities as well. We are also looking at
contribution of The Student the design and development of
Hotel in a trend towards for The Student Hotel in other countries including the UK. current and future TSH locations?
coliving/coworking for the next 3-5 years?
students and professionals? Do you see The Student Hotel as Our guests want a decent location
Mixed-use projects that help to having a role in shaping the future in terms of its proximity to important
The Student Hotel’s hybrid model regenerate areas like our first project of policy and planning in cities? things in the city, a cool part of
blurs the boundaries between in Florence, TSH Florence Lavaginini, town and an up-and-coming area, a
coliving, student housing and which won the prestigious ‘Best We already do. Affordability is a little bit raw but very vibrant. The
hotel accommodation for a new Mixed Use Development Award’ big challenge in our industry and trick for me is how do we make our
generation which thinks, behaves at the MIPIM international real I believe the private sector can spaces multi-functional at all times
and lives differently. Our concept is estate fair in Cannes this year. The develop urban living concepts that of the day. One of the reasons The
Bottom: TSH Berlin interior reception
the first in the world that’s able to Student Hotel has made a strong are affordable to the end user who is Student Hotel is successful is that all
Top: TSH Berlin interior lounge area cater to all of these groups under commitment to Florence and we often mobile and in need of short- of our spaces are used by different
one roof with short - and long- are pushing ahead with our plan term accommodation. I also think groups at all times of the day, so it
stay accommodation, coworking, for another 82,000 m2 mixed-use there is a huge potential in Europe really adds value to the property, the
restaurant areas, gyms and events development, anchored by a 550- for universities to take a lead in business and the community. What
programmes which connect people room TSH hotel, in Belfiore near developing student accommodation we’re looking for is that stickiness
from all walks of life, bringing the city centre. This is the largest of Charlie MacGregor – most of them are able to create factor. It’s absolutely essential –
together students, travellers, five developments we have in Italy, long leases which are government- as soon as you are integrated
freelancers, entrepreneurs and including Rome, but we are also backed, so the risk profile is very successfully into the community,
neighbourhood locals. There’s still expanding in the German-speaking Charlie is the founder and CEO low. Coliving and student housing then things work out better.
no clear definition on what coliving countries where we opened our of The Student Hotel (TSH). are the most social forms of
is, but for me coliving is a mix new Berlin hotel right in the centre TSH is the award-winning residential product and if you get If you could do anything different,
of residential and hospitality, an of the city in September. This hybrid hotel, short stay and it wrong people will be leaving in what would you have changed
enhanced version of PRS (private location also demonstrates our student accommodation the morning and coming back in about your approach to designing
rental schemes) where you are part ability to anchor new districts and revolutionising how buildings the evening and that’s it. If you get and developing The Student Hotel?
of a community and have access act as a catalyst and an accelerator are imagined and built to it right, you can be contributing to
to lots of facilities and services. for urban regeneration. Elsewhere drive student and young many different things. It’s all about Nothing. That said, it is our
TSH is also helping to solve a in Europe, we are growing in professional engagement. economies of scale but it has to be goal to constantly improve the
problem, that of the global housing Holland and expanding in France designed and operated with some sustainability of our developments
crisis. We provide safe, secure where we are working on a new type of masterplan. I have to say and the design of our spaces.
and comfortable homes for young location in Toulouse. Portugal we have been really lucky – I have
people when they are travelling – as and Spain are big markets for us, never been in a planning meeting
students, or as young professionals. in particular Madrid and we see where a project is rejected or not
26 TREND REPORT 2020 TREND REPORT 2020 27You can also read
