Why You Should Invest In European Student Housing Market

When entering the University, many students want to start living separately from their parents. They have a number of options depending on their needs and budget. These options include university campuses or dormitories, private entire or shared flats and private student accommodation. But not every university has its own campus and even if it has, it not always meets the demand. In this case students have to choose between renting a flat or private student accommodation. From my own experience of living in the rented flat, I can definitely say that student accommodation is a much better option because of many reasons. The first and the main reason is price – the same quality of space in a student hall will cost you less and normally include bills. , It is also generally fully equipped, and relieves you of that day-to-day responsibility of running a flat i.e.  plumbing, electricity etc. It is now becoming clear that the majority of students that do not live with their parents or on campus will prefer student apartments and it is this demand that is leading to the increased investment in student housing projects.

The second reason is quite trivial – dramatic undersupply on student housing market, especially in Continental Europe. Even the UK – country with the most developed student housing market – has received the highest level of investments in the student accommodation sector this year. According to Deloitte, there are 3.3 students per one bed in UK student accommodations. Continental Europe has even worse rates, except Sweden. Moreover, the condition of many accommodation does not meet students’ expectations.

However, the lack of student beds across Europe doesn’t mean that every city in every European country needs investments in the sector. Many factors should be considered before making decision to invest in a particular location. Investors have to conduct very comprehensive research about number of students in country’s cities, number of beds available, prices for the accommodation, number of full-time students etc. For example, in Italy, more than a half students prefer to live with their parents and stay in their home city for higher education; and the only city that is really worth investing in is Milan due mainly to being the location of the top universities. France has significant investment potential, however investors have to keep in mind the fact that there are large gaps in student housing provision in different cities (2,6 % in Paris versus 19% in Grenoble). All other European countries have their own specific criteria and gaps in the market, but smart investors can transform these opportunities into long-term income producing investments

In Summary;, Europe is definitely open for investments in the student housing sector and they can bring the investor and the consumer significant benefits if implemented correctly in accordance with best practice..  Overall, the student-housing sector is rapidly becoming a mainstream investment opportunity and at this stage in the investment cycle, it is the perfect time to invest in countries that have high an undersupply of accommodation and low-end competition.

Author: Valerii Ivanets