Student accommodation investors with large amounts of capital are targeting “super-sized” cities with vast numbers of international students, a report by Bonard has noted. Out of 19 alternative asset classes, student housing is number 1 in terms of volume and, so far, has attracted more than 700 investors globally.
However cities with smaller student populations can be a good option for student accommodation developers due to a current lack of housing, it added. Investment in student accommodation has seen significant growth the last ten years, with markets in Europe and Australia booming, the research indicated. Global student housing investment went from $0.9bn in 2009 to $17.4bn in 2018, marking a growth of 1833.3%, according to the report. “Out of 19 alternative asset classes, student housing is number one in terms of volume and, so far, has attracted more than 700 investors globally,” CEO of Bonard Samuel Vetrak said at the EXPO REAL event in Munich.
“It is mature, transparent and sizeable, while still offering the benefits of an alternative real estate asset class,” he said.The growth coincides with an increase in international students over the same time period. In the US, the UK, Western Europe, Central and Eastern Europe and Australia, the number of international students all increased.
The region that saw the highest increase was Central and Eastern Europe, where between 2008 and 2018 there was an increase of 92%. Bonard identified seven “super-sized” cities with international student populations of 30,000 or more, including London, Paris, Melbourne, Sydney, Vienna, Madrid and Berlin.
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