Global student housing investment volumes, in particular, have risen 87% in the last five years, says Savills. The maturity of the UK and US markets, coupled with low provision yet high demand for purpose-built student accommodation (PBSA), mean that southern European cities offer the strongest opportunities for new investment in the sector over the coming year. But the global need for multi-family, co-living and retirement housing offers opportunities across all jurisdictions, and are particularly under-invested asset classes in the UK, says Savills.
In its Global Living report, the international real estate advisor says that the provision of PBSA is highest in the UK where 27% of all students can be accommodated, and lowest in southern Europe. In Italy, Europe's fourth-largest student market, the national provision rate is less than 5%. Analysing city-by-city data from StudentMarketing - an independent provider of student housing and micro-living research and data - Savills has identified that provision is lowest in Rome, with a student population of 220,500, but only 6,500 student beds (a provision rate of 3%), followed by Porto (3.5%), Florence (3.8%), Barcelona (4.9%) and Madrid (5.7%). These cities, therefore, offer the best immediate opportunities for investors, says Savills, as many have strong international student populations - indicating a solid supply base - and high average PBSA rents.
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