Europe Student Accommodation Market - Growth, Trends, Covid-19 Impact and Forecast (2023 - 2028)

Europe Student Accommodation Market - Growth, Trends, Covid-19 Impact and Forecast (2023 - 2028)

Europe's student accomodation market is expected to register a CAGR of greater than 5% during the forecast period. France, the UK, and Germany are among the countries in Europe with the highest percentage of students engaged in the tertiary level of education and are major contributors to the demand for student accommodation. Upper Secondary and Bachelor's or equivalent exist among the largest shares of educational levels attained by adults in the majority of European countries during 2021. This leads to a majority of the student accommodation market in Europe having higher education level students as a major component of their business and contributing to the growth of the student accommodation market in Europe.

With the advent of COVID-19, almost all the educational institutions in Europe shifted from classroom to online education. With this, students were able to study from home, which resulted in a decline in demand for student accommodation during 2020–21. The United Kingdom, with the advent of COVID-19, observed an increase in the share of adults in education from a level of 41% in 2019 to 44% in 2021, leading to the formation of expectations among student accommodation providers for positive growth in the market with the reopening of colleges and COVID-19 recovery.

As the global economy and day-to-day activities recover from the effects of COVID-19, more school campuses are opening their doors to students. This makes it easier for both American and international students to move around and makes it more important for them to have a place to stay. With this, real estate and accommodation providers are seeking to recover the student housing market and reap the upcoming benefits.

From 2019 to 2021, people between the ages of 18 and 24 and 25 and 29 in Iceland, Ireland, Italy, France, and Germany were in school at different rates.In 2019, 62% of adults (18–24 years) in Germany were enrolled in school, and this figure is expected to rise to 61% by 2021. Iceland and Ireland, among the European nations, observed growth in the adult population engaged in education from 56% and 59% in 2019 to a level of 59% for both in the year 2021.

Switzerland, Iceland, Sweden, and Finland are some of the countries that spend the most of their GDP on education. In 2021, these countries will spend (5.7, 7.7, 6.7, and 5.7)% of their GDP on education. This rise in the percentage of students in these countries shows that more students are moving to these countries, which drives up the demand for housing and helps the student accommodation market grow. Countries like Iceland and Ireland have made it easier for students to choose schools outside of Germany and France. This has led to the growth of markets in these areas.

Countries in Europe with better educational facilities and more investments have always seen a rise in the number of students. In those countries, the demand for student housing has grown faster than in other European countries.Most of the top universities are located in countries like the UK, Chile, Germany, and the Netherlands, making them attractive locations for domestic as well as international students.

In the year 2020, general government expenditure in the EU on education will account for EUR 671 billion, which is 5% of the GDP. Germany spent almost 1.5% of its GDP on R&D education, and the next highest amount was 1.4% on secondary education. R&D education and secondary education are both levels of education that create demand for student housing and are linked to spending on educational institutions in these regions.

With the advent of COVID-19, student accommodation services observed a steep fall in their revenue. As affordability is the key to student housing, different service providers are coming up with a range of products with existing price variations, and accommodations of high quality have a greater existing value. As institutions have reopened with students coming, accommodation providers are coming up with various schemes for occupying a large share of the market. Nestpick, AmberStudent, Spotahome, UniAcco, Ocxee, Roomi, Housing Anywhere, Homelike, and other student housing providers are competing in the European market.

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