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.
- 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.
, 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."