Student House

News

2020-11-04

Student Housing Market Overview

The number of young persons in Europe pursuing higher education has been rising steadily over the years. Total enrolment in 10 European countries(Belgium, Denmark, France, Germany, Ireland, Italy,the Netherlands, Poland, Spain and the United Kingdom) rose from 12 million in the late 1990s to

15 million in the early 2010s – an increase of 25%. Since then, total enrolment in these 10 countries has risen by 10%, and it is expected to grow by 15% in the period to 2025. Growth in student numbers in Europe is driven by an influx of international students and a shift from traditional trainee programs to academic diplomas, Germany being one example. Growth, however, is uneven; the Netherlands, the UK and Germany experienced the strongest rise in enrolment numbers over the past decade.

 

There are several reasons for this: stable income levels and, in particular, extremely high occupancy rates are guaranteed thanks to the continued dramatic shortage of student housing and the largely long-term nature of the rental agreements. Student housing investments are also relatively independent of economic cycles, benefiting in particular from rising student numbers in Georgia.
With attractive yields that are slightly in excess of those offered by traditional residential properties, this makes student housing an interesting portfolio diversification option for private investors in particular. Tuition fee and rent are main expenditures for the foreign students and consequently these are the defining points to choose the country and university for education. The diagram below shows that 23-25% of all expenses of a foreign student is rent.