Student Housing markets at a glance

Student Housing January 5th, 2018
Student Housing markets at a glance

Arthur takes a look into student housing across the world, taking a glance at U.S, Germany, France, U.K, Spain and Australian student accommodation markets.

Savills world research has investigated an overview into these markets into these different countries and we uncover the results.

U.S

The US has the third largest student population in the world currently at 20,264,000, 5% of these consisting of international students.  Purpose built student accommodation rental range starts from $200 to $2,200 a month and consist of mostly shared rooms. The majority of private sector accommodation are ensuite rooms located off campus on small cluster flats.

Germany

Germany has a current student population of 2,758,000 following its 9th year of successive growth.  International students make up 12%  of this total and this has increased by 35% in the last 5 years.  Germanys largest student accommodation provider, Studentwerk, currently has 183,000 rooms with an average monthly cost of $250 per month.  There has been a surge in demand for the more luxury end of student housing ($500 + per month) consisting of studios.  Investment transactions are expected to exceed one billion in 2018, with majority of investment coming from foreign countries.

France

France has a student population of 2,551,000 , which is Europe’s second largest student population.  Paris has  the highest proportion of students with over 185,000 living in the capital. Half of the purpose built student accommodation is developed by CROUS, which has been in the process to try and deliver 40,000 new student beds by 2017.   There are now more than 50 managers in the private sector, with companies Nexity and Reside Etudes accounting for 30% of total private stock.

U.K

The U.K has a student population of 2,281,000 and has seen a 0.7% growth from 2015-2016.  International students  make-up 19% of the total student population at 434,000 which has grown by 5% over the last 10 years.  Roughly 50% of full time students live in the private rental sector and 1/5th in purpose built student accommodation owned by the universities itself.  The top 10 private accommodation providers own approximately 30% of supply.  The U.K is highly attractive for foreign investment, for instance Singapore invested £1.2 billion in PSBA in 2016.

Spain

Spain has a student population of 1,548,000, 7% consisting of international students doubling within the last 10 years.  University halls are mostly provided (90%) by the private sector, with the majority of firms being small scale operations many of which are religious organisations.

Australia

The student population in Australia is 1,410,000 and has seen a 2.7% growth from 2015-206.  26% of this total number are international students which is the highest proportion within the major markets in this article, mostly originating from Asia countries.  Sydney is an attractive proposition for students and there are over 5,000 beds proposed for development.  In Australia the top 10 student accommodation providers supply 23,639 beds.

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