Investors in student accommodation focus on continental Europe

Investors in student accommodation focus on continental Europe

The consultancy informs us additionally that 40% of total transacted volume in this segment in the last three years has originated from outside the country and this cross-frontier tendency continues to grow. Investors are seeking to diversify their portfolios with much interest from the USA, Canada and Singapore, aimed at the United Kingdom and the markets of continental Europe.

With a student population of 20 million, growth in international degrees due to an ever growing number of courses delivered in English, and with a very low provision of student accommodation, Europe offers very strong investment potential now that the United States and United Kingdom markets are mature, according to Savills.

In Spain, too, more and more universities are offering training in English or bilingually in English/Castilian, attracting many foreign students. In spite of the fact that in our country there us a slight tendency for student numbers to decrease, propelled, in part, by the constant fall in the young population, this disjunct fades into insignificance when compared to the constant influx of international students. Compared to the figures ten years ago, the total number of students has dropped 5%, while the number of foreign students is now double the total for the academic year 2005-2006.

Marcus Roberts, Director or Investment and Development of Student Residences at Savills states that  "the United States and United Kingdom markets have dominated world investment in the last three years, but, with the maturity of these markets, investors are looking for other areas with high demand, scarcity of student lodging and management solutions, however immature. While Germany and France are attracting attention, we are witnessing new markets open up in markets such as Austria, Ireland, the Low Countries, Italy and Spain”.

In this way, the growth of the international university population and the current situation of halls of residence in the Spanish market, characterized by a discreet level of funding and a high level of obsolescence and with little investment competence, has attracted the attention of specialized international groups with experience in this segment in other European countries, such as Knightsbridge, or The Student House, which last year acquired assets in Madrid and Barcelona.

These experts dominate new concepts in private and public spaces, the importance of design and flexibility of communal spaces, also in location, which allows for a balance between participation in the university environment and other sociocultural activities in the city, which enables us to clearly identify the unmet needs of the users of the accommodation and the potential for business growth.





Photo: e-architect

Iberian Property logoIberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!