The sector’s rapid growth is being fueled by the active rise in student numbers worldwide as well as an increase in international student mobility. In the 2000-2011 period, global tertiary enrollment rose rapidly, from 98 million to around 165 million in 2011. By 2025 they are expected to reach over 263 million globally (Source: SA: A new global asset class report).
While new student housing is being built to accommodate a growing student population, it is not happening fast enough, and the quality of product is not being updated for the changing needs of today’s student. As a result, Purpose Built Student Accommodation has outperformed other real estate sectors in the US and UK, and is expected to have the same projection across wider Europe.
Forecasted increase of 100 million college/university students in the next 10 years (2025) (Source: SA: A new global asset class report).
Students’ needs are shifting upwards: more sophisticated lifestyle.
The market lacks exceptional student residences with with best-in-class amenities and robust programming.
Economically and politically stable targeted markets (Europe).
Market imbalance: demand outnumbers supply.
A vertically integrated platform allows us to manage the process from investor to student, which makes our returns more significant relative to the competition.
Global investment into student housing reached $16.4bn in 2016, a new annual record (Source: Savills World Student Housing Spotlight 2017/18).
Market stability: less cyclical performance.
European universities are leading the way in terms of university quality. Of the QS World Rankings 2018, 369 European universities are listed, roughly 38% of all universities (Source: Cushman & Wakefield European Student Accommodation Guide 2018).
Limited government-university funding: universities are shifting toward private-public partnerships (“PPP”) in developing student housing.
PBSA’s steady and above average yields compared to other real estate sectors.