Students sharing a takeaway pizza

The Savills Blog

Second-rate facilities offer opportunities for providers of student housing

Taking a look at the amenities currently on offer across purpose-built student housing accommodation schemes (PBSA) in Europe, it swiftly becomes clear that there remains a gap in the market for new developments that better meet the needs of today’s growing student populations.

Across Europe, and especially in the south, many cities are facing strong demand for housing from international students, but often what limited accommodation is available is dated and doesn’t live up to students’ expectations.

This may come as a surprise, particularly to those in the UK, given there has been much media coverage of ‘luxury’ student housing schemes, with facilities akin to those in five-star hotels. But the reality is that these PBSA projects – attention grabbing as they are - are few and far between and almost unheard of in less mature PBSA markets.

Our analysis of current accommodation from across Europe’s 17 top markets, using data from StudentMarketing, bears this out, showing just how limited the existing offer is (see graph below).

Amenities and service provision in European PBSA (Average across 17 mainland European cities) 

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Source: Savills World Research using StudentMarketing

Utilities, such as energy and water bills as a basic service, are included in rents across the majority of markets (averaging 83 per cent), followed by a laundry room, but a third of properties lack even this rudimentary service. Study rooms feature in just under 40 per cent of properties, bike storage in 37 per cent, parking in 35 per cent and gyms 25 per cent.

Delving further and looking specifically at the food facilities offered to students, we see cultural tendencies playing a major role. Including three meals a day in students’ rent is very common in Spanish cities, but highly unusual in PBSA in German, Swedish and Polish cities. This in part reflects national cultural tendencies (the importance of shared mealtimes to southern Europeans for example), and providers continue to reflect this in their product.

But in response to a more international student base and changing habits, alternative approaches are being adopted. On-site cafés and restaurants, open to all, allow students to eat on site but at times that suit them. The rise of online takeaway apps make it much easier for students to order in, so common spaces in which to eat are becoming important. Communal kitchens, available to rent, give residents further flexibility when it comes to shared meals.

The general lack of provision of amenities across existing student housing stock underscores the potential of the mainland European market. New providers and international players have the opportunity to bring their superior products, international expertise and operator economies of scale to the locations currently underserving students.


Further information

Read more: Spotlight: Global Living

 

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