_The Global Student Property Report 2019: Identifying global trends in the student property sector
Today’s best universities are built on the development of cross-border partnerships, the strength of academic networks and an ability to attract students from around the world. Accommodation is playing a greater role in supporting this, by helping to create student communities.
The Global Student Property Report 2019 identifies the key global trends from across the student property sector, including the structural undersupply present across markets at all stages of development.
It charts the growth in capital flows into student assets, and it shows that delivering an exceptional student experience is critical for higher education providers across the world.
One thing is clear: the case for investment in student property remains compelling.
Download: Global Student Property 2019
Global trends in Student Property - at a glance
Student property is an increasingly global asset class
Cross-border capital into student property markets around the world accounted for 40% of investment into student accommodation over the last three years.
The level of globally active capital is expected to increase as existing operators in mature markets look to expand and build scale, brand and reputation in emerging markets. The next decade will see the emergence of large-scale, truly global owner-operators.
Global demographics will exert a greater impact on local markets
The astounding growth of the middle classes globally is fuelling the demand for all goods and services, including education. Consequently, the number of students studying outside of their home country has increased by 23% over the last five years. The OECD forecasts that the globally mobile student population will increase to 8 million by 2025, from 5 million in 2019.
“Students from around the world want to be in the right place, with the right people, in good quality accommodation with facilities that add value to that experience.”
Universities in new markets assert their position and threaten the established hierarchy
In China, university enrolment has increased by 35% in the last five years. Other countries such as India and Malaysia have also achieved double-digit growth over the same period. Universities in these regions are building a critical mass of students, quality and confidence.
The number of Asian institutions in the top 200 ranked universities globally, for example, has increased by 47% in the past three years challenging the status quo.
Students will demand more from their university experience
As students have ever greater expectations of their time at university, the demands placed on student accommodation will intensify. Students from around the world want to be in the right place, with the right people, in good quality accommodation with facilities and communities that add value to that experience.
A Knight Frank survey, in partnership with UCAS in the UK, demonstrates that accommodation is a key factor in supporting student wellbeing. Existing and new operators need to respond accordingly.
Collaboration and partnerships will drive success
From the US to India, our research reveals a development landscape characterised by higher construction costs, scarcer development land and mounting affordability pressures in markets which remain structurally undersupplied.
Our expert commentators all point to the need for collaboration and partnership between universities and the private sector to overcome these challenges.
How can we help? The Global Student Property Report 2019 identifies the key global trends from across the student property sector - download the report or contact our dedicated Student Property team.