A joint venture between Aberdeen Standard Investments and Swedish company Ailon Group is currently planning or developing 2,000 micro-living units in bigger cities in the Nordics. Moreover, the parties have plans for additional 3,000 units in the coming three years.
According to a press release from ASI the majority of the flats will be completed in 2020 and 2021.
The apartments are intended for students, young professionals and corporate residents and there will be access to co-working spaces and other social spaces. All units will be developed in close proximity to public transportation.
Roughly half of the 2,000 units currently under development are located in Sweden, e.g. in Stockholm and Malmö, while the remaining units are located in other key Nordic cities.
“Space in the best Nordic cities is really at a premium and micro living is a good way for us to provide quality homes that people can afford, with facilities that people want, and in places where people want to live”, comments Christian Schjødt-Eriksen, Fund Manager of the Aberdeen European Residential Opportunities Fund.
Jacob Cronstedt, co-founder of Ailon Group, states that micro-living has become an integral part of the asset allocation of European institutional investors and that there is high demand for such products in the Nordics.
“Social and demographic changes and more flexible employment conditions are reflected more strongly in the emerging micro-living asset class than in virtually any other current housing trend. The demand for living small is getting bigger and bigger”, he says.