PBSA (Purpose Built Student Accommodation) has grown from a niche market into the top performing property sector in the last 20 years. A prolonged shortage of student accommodation in many international university towns and cities coupled with robust demand from students, and PBSA’s rise as an investment vehicle with sustainable revenues makes investment in purpose-built student housing quite an attractive option for investors aiming to diversify property investment portfolios.
Based on data accumulated from Savills World Research, UNESCO, QS and National Statistics we’ve developed an infographic that highlights the top 10 PBSA emerging investment markets. We’ve intentionally left out the UK and US since the majority of investment is already being pumped into these established global markets.
Top 10 emerging PBSA investment markets
The largest student population of all the European markets, having grown by more than 28% over the last decade.
Home to over 2.5 million students, Europe’s second largest higher education population.
Italy is home to some of the oldest universities in the world. It continues to appeal to many international students, with numbers rising by 36% since 2009.
There has been a 7.7% increase in the number of Spanish students over the course of the last decade, with more than 1.5 million in 2015.
A booming market which primarily relies on students from Asian countries will continue to grow and need beds to meet the growing demand.
Has witnessed a quick increase in international students, up 652% since 2005.
International students currently make up 11.4% of the total student population in the Netherlands.
About a quarter of Austria’s increasing student population are international, originating primarily from neighboring countries.
Housing stock is dominated by substandard university-owned residences, while private sector options only account for 4% of stock.
Major universities only provide a small amount of their own accommodation, so most students rent in the open market.
The student accommodation market as a reliable investment option has begun to take off and many of the big investment companies and REITs have already invested heavily knowing the ROI will be well worth it. In addition, Asian economies, including China, India and Malaysia have witnessed a surge in their middle-class numbers, ensuring a supply of international students in the years to come.
To learn more about how our team can help you, please email our student accommodation expert Ravi Kurani on firstname.lastname@example.org or call him on 0845 838 2592.