In London, private purpose-built student accommodation studios are on average 37% cheaper for students than studios in the private rented sector.
A report by JLL showed that in 20 major European cities, when including utility costs, rents for private PBSA studios are more affordable than renting a PRS studio in almost every single market – even the least affordable rental cities in Europe.
Unmet demand for student beds surpasses 150,000 in both London and Paris.
According to the research, the top markets where students can save money by living in PBSA include Amsterdam, where PBSA is 46% cheaper, and Rome at 40%.
Just two cities were found to have higher costs in PBSA: Toulouse at 5% and Milan at 3%.
The lack of PBSA supply across Europe has forced many into the private rental market, exacerbating the overall housing problem. Students in Exeter and Nottingham make up 40% of all PRS households.
JLL has also found that in cities with high numbers of students, the fall in available rental homes was even more pronounced, both Manchester and Birmingham saw a 28% decline in rental home numbers.
Dominika Mocova, senior analyst for EMEA Living at JLL, said: “The long-term investment case for PBSA is more solid than ever. Developing more PBSA across the continent would be a game-changer for students who cannot find appropriate housing. It’s also essential to universities, whose reputations can suffer when they are unable to provide appropriate housing. Finally, those additional homes would also help ease pressure on the PRS market.”
Julia Martin, head of student housing EMEA at JLL, added: “From established capital cities to smaller, tertiary education-focused cities, the PBSA sector has real potential to help plug the gaps in the European student housing market.
“High financing and construction costs have limited new development more recently, leading to significant pent-up demand from students who are being forced into the private rental sector. As investors gain clarity on pricing, there is a big opportunity to tackle this challenge across the continent.”
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