Paris now top student property location – Knight Frank14 June
Student accommodation in Europe poses an interesting investment opportunity, with student numbers profiting from rising overseas mobility - and Paris is the top investment destination in student housing, says realtor Knight Frank.
In its International Student Property report, Knight Frank found that students’ desire for the best education did not let up during the Eurozone crisis. It sees a sharp contrast between financial volatility and the “strong, steady academic performance of Europe’s best universities over the past five years.” Nevertheless, investors should be wary of local economic developments. Commented Bob Crompton, CEO of Knightsbridge student housing: “The funding situation differs across the Europe; while local German banks are keen to invest in local projects, the landscape is certainly more challenging in Eurozone countries .. hit hardest by the financial crisis.”
James Pullan, Knight Frank’s Head of Student Property, added: “The rise in global student mobility has created an excellent opportunity for investment in key European cities.” Some 46% of international students study in Europe and the number moving abroad is set to more than double to 7.6m in 2025 from 3.2m three years ago. Paris has most property investment potential in the segment, attracting students from around the world and having a structural undersupply of private accommodation. It is followed by London, Vienna, Dublin, Barcelona, Munich, Lyon, Madrid, Milan and Amsterdam, while other cities to watch are Stockholm and Copenhagen. International student numbers in Scandinavia have trebled over the last decade as European students face no tuition fees there.
Source: Knight Frank