‘Consolidation in the student housing sector is at the very beginning,’ said Samuel Vetrak, CEO of BONARD. This year and in 2020 we can expect more portfolio deals and acquisitions, especially in conjuction with institutional money coming in. There will be a lot ore liquidity in the market.’ […]

At present the sector is fast-growing but still very fragmented but consilidation will reaoganise the market into fewer bigger and branded players. […]

According to BONARD research, in Europe, including the UK, therea re 107 portfolios which meet the criteria but most of them are small: 44 go up to 1,500 beds, 38 up reach, 5,000 beds and only 25 of them are larger than 5,000 beds. […]

‘Investors see it (student housing) as a revenue-delivering asset class, even at the end of the cycle, with occupancy rates between 90 and 100% and totally recession-proof,’ Vetrak said. ‘Yields are higher than in mainstream asset classes by between 100 and 250 bps.’

Investors who were focused on the Uk are now looking to other countries in Europe, said Vetrak. ‘After the boom in the UK, Germany and the Netherlands, the most activity we see now is in Spain, Italy and Central and Eastern Europe, the most undersupplied countries that deliver the best returns.’

Supply is increasingly steadily, but not enough to meet growing demand. Berlin is a case in point: the student population is forecast to be 200,000 in 2020 and the pipeline is 20,000 beds. ‘This increases the total provision rate projection from 9.5% to 10%, which is really not that much,’ said Vetrak. […]

‘More hybrid products will be created,’ said Vetrak. ‘Student housing and micr-living will converge to cater for young professionals and recent graduates who want to stay on living in the city. […]

Read the whole article on pages 36 – 37 here

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