In a landmark announcement that signals growing institutional investor appetite for alternative living assets, PATRIZIA has unveiled its inaugural Student City Index, positioning London, Paris and Berlin as Europe's most attractive markets for Purpose-Built Student Accommodation (PBSA) investment.
The comprehensive research, which analysed over 180 university cities across 21 European countries, comes as explosive growth in European student numbers continues to outpace available accommodation supply, creating significant opportunities for institutional investors seeking resilient income streams with attractive yield premiums.
The comprehensive research, which analysed over 180 university cities across 21 European countries, ranks the top 10 PBSA investment destinations as:
1. London (UK),
2. Paris (France)
3. Berlin (Germany)
4. Vienna (Austria)
5. Madrid (Spain)
6. Copenhagen (Denmark)
7. Brussels (Belgium)
8. Stockholm (Sweden)
9. Zurich (Switzerland)
10. Barcelona (Spain)
"Student housing is fast becoming a cornerstone of institutional living strategies. This research supports smarter capital deployment by highlighting where strong fundamentals align with liquidity, and why a city-by-city lens is critical for success in this dynamic market," said Antonio Marin-Bataller, Head of Investment Management Living at PATRIZIA.
The Index reveals that the UK dominates the rankings with six cities in the top 20, while Germany's tech-focused university towns Darmstadt and Aachen emerge as high-potential investment destinations. PATRIZIA is capitalising on this market dynamic through its latest TransEuropean Living fund, which aims to raise €1bn for investments in alternative living assets including PBSA.
"Institutional investors need more than macro-level guidance because PBSA performance is shaped by highly localised factors. Our Index gives them a reliable framework to identify not just where the student population is growing, but where the conditions for sustainable investment returns are most favourable," explained Dr Marcus Cieleback, Chief Urban Economist at PATRIZIA.
What investors should particularly note is the emergence of specialist micro-markets within these cities – areas with specific zoning regulations or development incentives for student housing that haven't been widely publicised but offer significant potential for enhanced returns through strategic site acquisition and purpose-driven development.
People mentioned:
- Antonio Marin-Bataller, Head of Investment Management Living at PATRIZIA
- Dr Marcus Cieleback, Chief Urban Economist at PATRIZIA
Companies mentioned:
- PATRIZIA - Global investment manager in real assets
Photo by cottonbro studio: Pexels
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