The purpose-built student housing market is “good for investment” in 2019, a new study by StudentMarketing confirmed, with demand consistently outstripping supply in Europe, as the continent becomes more and more popular with international students.
Student housing as a sector is beginning to consolidate and mature, with many opportunities for high returns the study explained, counting over 500 investors, developers and operators over Europe.
Amsterdam is one of the cities with the best investment potential. Photo: Kirkandmimi/Pixabay
“Germany continuously increases the budget for the international exchange”
In 2018 transactions reached almost €10bn and the forecast is rosy for the future, too. The 20-year data showing that demand doesn’t decrease in economic downturns, which makes student housing recession proof, the report argued.
Several investment managers, the study found, consider allocating more capital to student housing and more than 200 investment managers now rank student housing as fourth for development and investment.
More than 350 new PBSA projects with a combined 105,000 beds are in the pipeline for the next two years. But this €15bn investment is not enough to meet the demand, the study warned.
In continental Europe, demand heavily outstrips student housing supply and is growing…Continue reading