Maybe the times in which you were in university or an apprenticeship and lived in a shared apartment, at home or even as sublease are long past. It is a fact, though, that in the past 5 years – in particular in Germany – a market segment has developed about which is often said “Imagine, if we would have had something like this back then”. We are talking about so-called “Student Housing”.
Fundamentally, it is a relatively young market in Europe but characterized by huge growth perspectives. Significant push-factors: the generally higher expectations of employers in the economic sector towards education and the higher mobility of students during their studies. If 60% of students in Europe leave their university location for an internship abroad or to seamlessly continue their studies in a master program, it can be considered an international education migration.
In the latest Market Tracker “Student Housing in Europe – the Maturing of an Asset Class”, Catella Research analyzed this dynamic form of use and created a country overview.
Especially in the investment markets, this dynamic is reflected: Next to the global market leaders such as USA and Canada, the UK has the most active Student Housing market from 2016 until Q3 2018 with a total for 70,000 transactioned beds. Further European frontrunners, clearly behind the UK, are Germany (16,000 beds), Spain (10,000), the Netherlands (9,800), France (5,900) and Austria (4,300). An especially positive development could be found in Austria, where the turnover figures doubled in 2017. But also in Ireland and Spain, the establishment of Student Housing led to an increased transaction volume.
Further interesting results:
- International students have become a relevant target group for Student Housing.
- The high number of transactions is a testament to the market dynamics.
- Positioning Student Housing properties under a brand and concept opens up new and binds existing target groups.
- Operator concepts: In addition to Student Housing becoming established as an asset class, the operator structure is also increasingly professional.
As presented in our map, a structurally diverse situation across Europe is shown. Various national laws for building properties and different dynamics with student figures lead to an increasingly heterogeneous presentation on the market: in the first generation of European students, the so-called Homo studensis with almost identical requirements for accommodation, infrastructural features and community.