Leiden moves up in the ranking by no fewer than 14 places compared to last year. This is due to a combination of factors. Firstly, the shortage of stock in Leiden has increased. Secondly, there are fewer developments scheduled in the city compared to last year. This ensures that the estimated future shortage will be considerably more acute than last year.

Savills Student Housing Ranking

As in previous years, Savills has again created a ranking of Dutch cities, that provides insight into investor opportunities in each city. The position of the cities in the ranking depends on factors such as changes in the pipeline, the current and future shortfall per student, and the pipeline in relation to the number of students and rental price.

Delft comes in second place. The final place in the top three is for last year’s number one, The Hague. The differences are, for the most important part, influenced by future shortages, as this is a dominant indicator for future occupancy. This is the reason why Arnhem and Zwolle are in 16th and 17th place respectively, and future surpluses are expected in these cities. As is the case in Breda, a city that has seen the largest increase in rents, which has caused this city to drop in the ranking by a number of places. Wageningen brings up the rear. This is partly due to the fact that the current quantitative shortages are limited and are also expected to remain limited in the future due to planned developments. In cities such as Wageningen and Arnhem, there is room for new developments as a result of qualitative shortages.

Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherlands, says: “The demand for housing in student complexes is currently mainly driven by more than 90,000 international students. This number is expected to go up to 125,000 in the coming eight years. International student enrolment has not declined as a result of the pandemic; the share has even risen slightly by around 1%. With added demand from starters, this means that the current shortage of 17,300 units will go up in the coming seven years to a total of 32,000 units based on the planned developments already in the pipeline.”

Bas Wilberts, Head of Residential & Hotel Investments at Savills in the Netherlands, says: “Rising shortages will lead to rising rents. In the last year, the average rent for a student room in the Netherlands went up by 14%. The risk perception for student housing is declining which is resulting in a current gross initial yield of 5%. Investors have taken note and are becoming increasingly more interested in these types of developments. After all, student housing is a safe haven in this current economic downturn.”

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