Delft’s popularity among international students can be partly attributable to its relatively high position in the Shanghai Global Ranking of Academic Subjects. This has made the technical university especially popular among Asian students. For example, 21.4% of all Chinese PhD students in the Netherlands are /enrolled at TU Delft. Meanwhile, the number of Dutch students is also increasing, leading to the projection that there will be 20% more students living away from home in Delft in ’25-’26.

Savills Student Housing Market Indicator in the Netherlands

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 supply-demand ratios, students living away from home, development pipeline, university ranking, percentage of international students and rental price growth.

Amsterdam is ranked in second place, having made the biggest leap up the ranking, up from 11th last year, due to strong local demand versus limited supply. All cities are currently experiencing a shortage of affordable housing, but Amsterdam’s shortage is acute, and as a result, young professionals are more likely to continue living in student housing. Supply in the capital will further be constrained by the projected growth in the number of international students by nearly 40% over the next five years.

Tilburg is ranked in third place, which can be attributed mainly to the city’s above average rental price growth in combination with a growing international student population. Over the past six years, the average rent for student housing in Tilburg has increased by 15%. On average, students in Tilburg now spend 450 euros per month on accommodation.

Leiden, last year’s number one, dropped to sixth place, mainly as a result of lower long-term rent price growth, especially in comparison to cities like Tilburg (15% in Tilburg over the past six years versus 6% in Leiden). Another factor is the increase in the supply pipeline, such as More (Bio science park) and Liv on the Ypenburgebocht - projects sold last year.

Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherlands, says: “Cities with only universities of applied sciences also stand out for their poor performance in the ranking. This can be attributed to the expected decline in the number of students enrolling at universities of applied sciences, which is projected to begin as early as ’23-’24. This does not mean that these cities (and other lower-ranked cities) cannot be of interest to investors. After all, the student housing shortage is not a local phenomenon – it is nationwide. Therefore, even the cities that are currently trailing behind in the ranking will likely see sufficient demand, especially when it comes to high-quality supply.”

Bas Wilberts, Head of Residential & Hotel Investments at Savills in the Netherlands, says: “With an investment volume of 326 million euros in 2021, the student housing market managed to achieve a 25% increase compared to 2020. This is because the strong foundations of the student housing market have not been eroded by the COVID-19 pandemic. International students continue to come to the Netherlands. Moreover, the existing shortages are unlikely to be resolved in the short term. The government will not be able to sufficiently prioritise student housing when there are also shortages in the social housing, private rental and affordable owner-occupied housing sectors. This creates opportunities for professional student operators and for cash-flow-driven investors.”

 Read the full report here.