Property markets have been an ongoing headache for institutional investors for months, even though sharp interest rate increases have recently been somewhat mitigated by cooling inflationary trends. There has also been a sharp rise in the cost of construction and energy, which has reached a new plateau.

Against this backdrop, traditional housing investments are no longer a sure bet. As a result, specialised residential or alternative housing business models, which can operate somewhat differently from conventional housing concepts — and may therefore also have different risk-return profiles — are increasingly being scrutinised.

Included among these alternative models are micro-apartments, which, when fully furnished or supplemented with services such as a concierge, are moving closer to the hospitality segment. In this segment of the living sector, the boundaries between pure residential and pure hotel are becoming blurred. The potential rental income available to