European investment volume reaches record €11.7bn
The total European investment volume for purpose-built student accommodation (PBSA) has reached €11.7bn in the first three quarters of 2022 – a 130% increase on the same period in 2021, and a record high according to Savills.
The strong growth in international students who heavily rely on PBSA and the rising number of students attending university is driving investor interest in the sector. Savills expects this growth to continue over the coming years, as the number of young people in Europe (15–19-year-olds) is forecast to rise by 5.8% by 2027. Prague has the highest forecast growth of the European countries surveyed in this age category – with an expected annual increase of 5.7%.
At the same time, many European markets have a significant undersupply of PBSA, which is driving strong rental growth. The average provision rate – the total number of beds divided by the total number of students – across European cities is currently 12.5%, down from last year’s 13% figure. Prague’s current provision rate stands at 24% and hasn’t changed since last year. It remains above the European average …