Student housing emerges as key investment in Europe

Student housing was a key topic at Expo Real 2025, highlighting its evolution into a core and robust real estate asset class in Europe.

Student housing at EXPO REAL

The panel, "Student Housing: A Major Opportunity for Europe's Cities," featured leaders from Amsterdam, Barcelona, PGIM Real Estate, and BONARD, who discussed how student housing is transforming the housing landscape in European cities, attracting investment, and promoting balanced urban expansion.
BONARD presented data showing that student population growth is exceeding accommodation supply in major European study locations. Across 291 cities with a total of 13.5 million students, purpose-built student accommodation (PBSA) market saturation remains low, with examples such as 17% in Madrid, 20% in Berlin, 30% in Greater London, and 37% in Amsterdam. These figures indicate substantial market potential and room for further development.
Europe is increasingly popular for both international students and institutional investors. Investments in PBSA are increasing as investors seek stable, socially responsible assets with consistent demand and income. Data indicates a shift in student movement away from traditional locations like the US and towards Europe and Asia, boosting the need for student housing in these areas.
With student enrollment increasing faster than the construction of new accommodations, the availability of PBSA in Europe's main university cities is significantly less than the total student demand. Market data suggests substantial room for new development before the market matures, with high absorption potential in cities like Madrid, Berlin, Greater London, and Amsterdam.
Rental data analysis in major German cities shows that markets with less PBSA have higher rent increases in the private sector, highlighting the stabilizing influence of student housing on local affordability.
The Expo Real session underscored that student housing is now a mainstream institutional real estate asset class. Its core elements, such as consistent occupancy, strong demand, and positive community effects, make it a unique asset that offers both stable financial returns and societal advantages.