The latest BONARD data highlights the drivers behind Europe’s rise as the destination of choice for students and investors. Europe is enjoying a surge of interest from both real estate investors and international students, making it the place to be for operators and developers in the student housing sector.
With institutional capital now backing the asset class, the sector has a great opportunity to grow and consolidate, the attendees of the latest BONARD webinar heard.
Presented by BONARD’s real estate specialists, the webinar provided up-to-date statistics on the performance of the European student housing sector along with insights from three industry leaders – Pedro Sousa, Juan Manuel Acosta, and Carlo Matta – who participated in the panel discussion.
As the leading provider of independent data on the rented residential sector, BONARD is uniquely positioned to track the evolution of student housing across study destinations worldwide.
“We see from data and conversations that Europe combines strong and growing demand, chronic undersupply, maturing portfolio landscapes and resilient returns; those factors combined are the reason why investors are more and more interested in the student housing sector in Europe,” Martin Varga, Chief Growth Officer at BONARD, explained during the webinar.
“European student housing ticks all the boxes to attract investors.”
Data-driven optimism
“We work with a global pool of LPs, and student housing is a priority,” said Pedro Sousa, Senior Vice President at Brookfield Asset Management.
“There is an unbelievable opportunity to grow and scale quality assets.”
According to BONARD data presented during the webinar, the sector’s KPIs are excellent.
Demand is robust and growing. International student numbers grew at a CAGR of 5.5 percent between 2016/17 and 2023/24, boosting demand for quality student housing options. Student numbers in Europe are expected to keep growing in the coming years as visa policy and regulation changes shift student flows away from other study destinations.
Juan Manuel Acosta, CIO at Rockfield Real Estate, explained: “The continent is very friendly and receptive to international students. It offers quality universities and accommodation options at a competitive price. Also, some countries are doing very good homework, removing barriers for international students.”
Rents are growing faster each year in most countries. The average growth across the EU was 3.7 percent in 2022, but it climbed to 5.2% in 2024. Thanks to strong demand, occupancy rates remained close to 100 percent in most student cities.
Across the continent, the supply and demand gap is expected to remain wide in the next decade, highlighting the ongoing potential the sector offers to investors and developers. Europe has, on average, a 14 percent provision rate, a fraction of the 54 percent maximum saturation rate calculated for this market. Popular countries like Spain and Italy have particularly low provision rates – 8 percent and 5 percent, respectively.
Finally, while transaction activity was generally quieter in 2024, this year has already seen several sizeable transactions, including the Livensa Living acquisition by Nido Living and CPP Investments for €1.2 billion.
Panellists were optimistic about transaction volume and yields in 2025/26.
“We’re cautiously optimistic. As more capital flows into student housing and the sector continues to institutionalise and professionalise, we expect to see yields sharpen,” said Carlo Matta, CEO of Nido Living.
Time to consolidate
During the panel discussion, Acosta observed that Europe needs bigger players now that institutional capital has started to flow into the market.
“It’s time to consolidate. We need a couple of companies that can bring a better, more efficient, cheaper, and better-managed product. It’s encouraging to see this is starting to happen. That can only happen to the benefit of everyone, so we shouldn’t be afraid of that consolidation,” he said.
Global political volatility, as well as Europe’s fragmented landscape in terms of laws and regulations, could create challenges to growth.
“The biggest challenge in Europe remains the lack of product — specifically, a shortage of institutional, investable assets,” added Matta.
But the opportunity is still promising.
“We need time and the right capital to create a European platform. The size of the European student market is huge, so anyone who has the time and the money to do it can create a player as big as any in the US or the UK,” said Sousa.
As Europe continues to build its reputation as an international student hub, awareness is growing that student housing is central not just to its ambitions as a study destination, but also to its overall economic prosperity.
According to Matta, it’s not a coincidence that more English-taught courses are being introduced in European universities.
“It reflects a wider recognition that economic development depends on attracting businesses, and businesses are drawn to regions with strong talent pools. That talent, in turn, is shaped by the quality of universities, which hinges on two things: academic excellence and first-class accommodation,” he said.
