The student housing market averages 63% of total purpose built student accommodation (PBSA) beds across Europe. Therefore, as the number of students in Europe continues to rise, the demand for affordable and quality student housing is becoming a pressing issue. Countries such as France, the Czech Republic and the Netherlands are witnessing the highest growth in student numbers. To accommodate this surge, the European student housing market is experiencing substantial growth and attracting significant investments. As previously mentioned in “Student Housing: A Blueprint for Property Management” – Savills reported that in 2022, the total volume of investment in European student accommodation increased by 130% year-on-year.
In this blog, we will explore the growth of student housing in Europe, the influence of the UK PBSA sector and technology’s role in enhancing the student experience and facilitating efficient move-ins and move-outs.
The Booming European Student Housing Market
The traditional model of small student rooms and shared units is gradually evolving into larger, purpose built student accommodation complexes. This shift has been driven by the increasing demand for quality and affordable student housing options across the continent. While Europe’s student housing market is relatively young compared to the UK, it is rapidly expanding – which is fuelled by the recognition of the importance of creating living environments that support students’ academic and personal growth.
A report by CBRE highlights that the demand for student housing is due to the strong population growth and increase of international students, which is being driven by the increasing number of English-taught programmes. The report further highlights that students prefer PBSA over private rented sectors (PRS) in Europe, due to the smart amenities and services it offers under one roof (which are typically included in the rent). In addition, PBSA provides an attractive alternative to the overcrowded European market – the CBRE ebook on “European Student Housing Shows Resilience” states, in a location with a scarcity of PRS, PBSA is a sought-after alternative as it offers good value for money as well as safety, market level rents and reliability.
This notion was further expressed by Duco De Jong from Student Experience in a panel discussion at Provada. De Jong noted that with PBSA, students not only experience higher living standards but also gain the flexibility to move around in the sense that – “if students study in the Netherlands and live with Student Experience, they also have the opportunity to live in Spain for six months, experience the same facilities, have the same community and gain the same level of security,” thus enriching the student experience.
Investor Interest
Alongside the increasing growth of students in Europe, according to a recent article by JLL, the growth of the European student housing market can also be attributed to investor interest. The rental growth continues to catch investor’s attention due to the sector’s attractive risk-adjusted returns and the long-term demand for student accommodation. JLL’s prime European yield research chart shows between a 25 and 100 basis point advantage when compared with most other real estate locations. This increase in yield and occupancy rate has made the EMEA market more favourable for securing debt.
The Influence of the UK PBSA Sector
When looking for inspiration and best practices in the student housing industry, many European countries have turned to the UK’s PBSA sector. The UK has been a leader in the student housing market with a well-established and mature industry that addresses the growing demand for student accommodation. In the panel discussion with Yardi’s Richard Gerritsen, De Jong further notes that the student housing model for Student Experience was heavily influenced by the UK. The CEO “looked all over Europe, but especially in England, because the market there is more mature in the field of student housing.”
Furthermore, the influence of the UK PBSA sector extends beyond physical infrastructure and operational strategies. European providers have learnt and observed the importance of fostering a sense of community within student housing complexes from the well-established UK market. The UK PBSA sector has recognised the value of social interactions and community-building activities for students. By organising events, communal spaces and facilitating connections among residents, the sector has created an environment that supports students’ personal and social development.
Thus, the UK PBSA sector has become a great example for the European market. With the maturity of the UK market, European PBSA providers can gain inspiration and better replicate the success seen in the UK, helping to accelerate the growth of their own PBSA sector.
“Continental Europe has only exploded in the last five to seven years. It was very traditional back then… bigger student blocks are all recent… and that is where the UK is a good example.”
Dimitri Huygen from Xior Student Housing
The Role of Technology in Enhancing the Student Experience
Technology plays a crucial role in modern student housing, both in facilitating efficient management processes and enhancing the overall student experience. Streamlining operations through technology enables student housing providers to manage the various tasks associated with student residences effectively. From processing termination of contracts to scheduling repairs and cleaning – technology helps ensure that all actions are promptly addressed, promoting smooth operations and resident satisfaction.
Yardi’s PBSA solution is revolutionising the student housing sector for the UK, Irish and pan-European markets. By leveraging technology and providing a white-labelled app, the platform can simplify the booking process, invite guarantors digitally and creates contract agreements for e-signatures. It digitises the induction process, allows students to review balance details and set up payment options as well as provides a convenient way to report maintenance issues. Students can secure their accommodation and connect with their community with a single end-to-end solution.
Additionally, the Yardi PBSA solution helps streamline operations. Through bulk operational tools, such as approvals, bulk move-ins and move-outs to mass lease execution and bulk countersignature features, PBSA developers can reduce the administrative burden on housing providers and deliver swift execution of leases. This efficiency provided by the software not only saves time and optimises staff performance but allows providers to analyse and improve KPI performance. Therefore, helping to continuously enhance the student journey and ensures a seamless transition from one student to another.
Discover how Yardi’s end-to-end PBSA solution can help you streamline your process and drive student growth.