lnvestment will be led by Spain, Italy, Germany, France, and Portugal. According to Savills, there are currently 1.94 million PBSA beds (public and private) in Europe, with an estimated total value of c.€286bn.

The report, which includes findings from a survey of 11 major European investors who collectively manage PBSA assets worth EUR 17.8 billion, highlights barriers that will impact investments into the PBSA market the next 2-5 years, with 45% citing that securing planning permission  is a big challenge, as well as European and global economic growth, interest rate movements, inflation, housing, affordability and regulations. 62% of respondents also expressed that they intend to refurbish non-compliant stock for ESG regulations, while 23% plan to sell it.

Kelly-anne Watson, Managing Director, The Class Foundation, noted: “This survey is key in providing the industry with information direct from investors that shows the strength of the PBSA sector. The PBSA landscape in Europe has been experiencing unprecedented growth in recent years, driven by evolving student demographics and a resolute commitment to enhancing the quality of student living. Concurrently, the distress of the housing crisis has highlighted the substantial influence investors have, not only in student housing but in the broader housing market. Investors play a pivotal role in shaping the trajectory of this flourishing sector, and it’s great to see so many of them committing to its growth.”

Richard Valentine-Selsey, Director, Residential Research, Savills, said: “It’s great to have such valuable insights from European investors as a result of this survey and what’s interesting is the future growth plans or the sector, but also the challenges preventing it from developing even further than that. Unsurprisingly, given the economic backdrop, equity and debt for development came out as the biggest concern. This does however also point to an opportunity for those investors who have already raised capital and are in a position to start deploying.”

As well as debt and equity, land acquisition and affordability were highlighted as the biggest challenges for investors in the report, with site connectivity remaining paramount when choosing green or brown belt land, closely followed by sustainability, construction costs, and complexity.

For further information and inquiries, please contact The Class Foundation or read more here. (put the link for the report)