1、REPORTCBRE RESEARCHNOVEMBER 2024European student housing:The growing demand for PBSA in a constrained marketIntelligent InvestmentRequest photo frommarketing2CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentEuropean student housingExecutive summarySignificant investment activityInvestment activity

2、in PBSA is picking up quickly as rates have decreased following three cuts by the ECB in 2024.The sub-sector is therefore showing a relatively rapid recovery from the market downturn in 2022-2023,especially compared to multifamily housing.PBSA is well-positioned to attract the core-plus and value-ad

3、d capital that is currently most active.Consolidation of sectorAcross Europe,PBSA is increasingly evolving into a sizeable sub-sector within Living.In recent years,there have been more opportunities coming to market,and a wider range of investors becoming active in the sector or seeking to do so.Sig

4、nificant amount of platform opportunities underscore the maturing of the sub-sector.Increased PBSA relianceThe shortage of housing in European cities and subsequent high rents are especially challenging for students.As professionals are usually preferred by landlords and students often have smaller

5、budgets,the Private Rented Sector(PRS)is becoming more inaccessible to them.Demand will hence likely shift more towards PBSA(Purpose-Built Student Accommodation),which caters to the needs of students.UndersupplyDespite substantial additions to the PBSA stock in the past decade,the growth in student

6、numbers in cities has far outpaced supply.The limited availability of student beds across Europe is creating a severe demand-supply imbalance,displayed by the high occupancy rates and extensive waiting lists for many PBSA assets.The outlook for rental growth and returns in this sector of the Living