Student housing is becoming an increasingly attractive investment product in European markets. StudentMarketing, a global market intelligence consultancy, summarised the most important findings of the European Residential & Student Housing Investment Briefing at MIPIM.
Student housing will be one of the key topics at the upcoming Prague Property Forum 2018.
- Out of alternative investment asset classes, investors are most frequently targeting student housing (53%).
- Over 500 investment companies have already engaged in student housing in Europe, including major market leaders. 204 of them operate in Germany.
- Demand (international and domestic mobile students) is constantly growing and outstrips supply in Europe with a 13% provision ratio (on average) which is almost twice less than the same figure of the United Kingdom or the United States.
- Student housing as an asset class is established with high liquidity. Yield rates overperform mainstream asset classes with great margins.
- The student housing asset class is now well-documented which provides a transparent and safe environment for investment decisions.
- Based on pan-European research, communal premises matter increasingly more to students, even more than room equipment.
- European countries have ongoing interest, strategies and targets set to attract more international students, hence the student housing asset class is expected to be in the further growth stage.
Samuel Vetrak, CEO of StudentMarketing commented: "We have now succeeded to document over 500 investors, developers, operators and their portfolios in 20 EU markets: 60 cities, 5,000 student housing buildings, incl. ownership, bed capacity, price details, amenities, facilities, services and student-customer preferences. This makes for a convenient environment for investment decisions, entry or expansion strategies, due diligence or pricing models."
