Aareal Bank Expands Services with Dedicated Alternative Living Financing Division

The Aareal Bank, based in Wiesbaden, Germany, has decided to launch a separate department after witnessing a rising demand and a growing significance for alternative living concepts. This department will be known as “Alternative Living”. This strategic move is seen to be the bank’s commitment to contribute to the student housing investment projects and activities. As there is visible growth in the student property investment sector, the bank is leveraging its specialist expertise by introducing the “Alternative Living” department. Benjamin Walter, who joined Aareal Bank from Union Investment Real Estate GmbH, has taken over the newly established team starting from Oct 1, 2023.

Bettina Graef-Parker, Managing Director of Special Property Finance at Aareal Bank, has highlighted the structural shortage of supply in the student housing market. The student housing market in Europe has experienced significant growth in 2022, reaching a record-breaking value of €12.4 billion. This surge can be attributed to the increasing student population and their heightened mobility, underlining a noticeable disparity between the supply and demand of student accommodation. 

Co-living spaces in the student housing sector provide young professionals and digital nomads with a communal living approach in residential properties. Property investors see this evolution in the market as a student property investment opportunity. This new type of residential accommodation for students creates a completely new rental concept. In the co-living spaces, certain enterprises offer fully-equipped flats, shared spaces, and additional services in urban locations to tenants through “Alternative Living”.

There is approximately a total student accommodation investment of  €1.2 billion in Europe’s emerging co-living market segment since 2020. “Although the student housing sector growth is still in the initial stages, the dynamic rise is anticipated in Germany, the UK, and France”, said Bettina Graef-Parker. Aareal Bank is a renowned European lender, especially in the student housing sector, and has vigorously provided various student housing finance options for PBSA and co-living student properties in Germany. The “Alternative Living” initiative by the bank underscores the bank’s commitment to supporting such innovative and alternative student housing alternatives, bringing more opportunities for student accommodation investment as it gains traction in the real estate market. The Aareal Bank's decision to develop the "Alternative Living" division under the capable direction and management of Benjamin Walter demonstrates its strategic response and willingness to enter a sector that is rapidly expanding, like the student housing industry. The bank primarily leverages its student accommodation investment activities and facilities, solidifying its position in the European alternative living segment. This move aligns with the evolving trends in the real estate market and the rising need for innovative housing solutions.

Wish to list with amber? It is quite easy! Do it in three easy steps! Just fill out the form, and we will schedule a call with you and get booked. No hassle, no formalities. Check the list with us to know more!