The student accommodation segment is always in the interest of international investors. According to the latest data from Savills, the peak of investments in university campuses was reached in 2022 with 12 billion in capital, but even now interest continues to remain high, especially due to the high gap between supply and demand for beds which leaves ample room for improvement for these assets in Italy, as well as in other emerging nations such as Belgium and Spain. In the 2023 Italy has attracted 200 million in investments in student housing.
PBSA investments growing
Second Giacomo De Feo, Director Capital Market at Savills, “Italy confirms itself as one of the reference destinations for PBSA investments in Europe. The sector’s solid fundamentals, such as the constant increase in international students and the structural bed deficit, contribute to consolidating the attractiveness of the PBSA market for both investors and sector operators. Milan, Rome, Florence, Turin and Bologna remain the main cities of interest for investors, but there is also growing attention for cities with a recognized university presence such as Padua, Pisa, Venice and Ferrara.”
The number of university students in Italy is growing
The number of university students in Italy has recorded constant growth in recent years, exceeding the threshold of 1.9 million in the last academic year, with an increase of 5% compared to the previous period. Italy’s renowned universities continue to attract growing numbers of international students, up 75% from ten years ago and now representing 6% of enrollees. Mobile students also increased, although to a lesser extent (+1% year-on-year).
Rome confirms itself as the main Italian city by number of university students, with approximately 280,000 enrolled, including those of online universities. Milan follows with the highest number of international students, over 21,000.
Limited supply of student accommodation
L’overall supply of beds for students in Italy amounts to approximately 74,000, with a predominance of public structures (69%). In recent years, the private supply of modern accommodation managed by specialist operators has increased, now representing 24% of the total stock. However, the current offer is able to satisfy only 4% of the student population, one of the lowest percentages in Europe.
By 2026, it is expected that they will be available approximately 21,000 beds additions thanks to 64 new projects. However, this expansion will not be enough to meet growing demand, especially in cities with a high number of off-campus and international students.
High interest in student housing
The student housing sector in Italy continues to arouse great interest, as demonstrated by the significant number of international and national operators active on the market. Aparto, after the success of the openings in Milan, is developing new projects in Milan Bovisa and Florence. The Social Hub plans a second opening in Florence, followed by new facilities in Rome and Turin. Collegiate, after the inauguration of the new campus in Milan Bicocca, is planning further developments in the Lombardy capital.
Among the national operators, CampusX will inaugurate the Novate Milanese project by the end of the year, followed by new openings in Trieste and Naples. Camplus has planned new projects in Florence and Udine, while Joivy is preparing to enter Rome after the recent opening of the facility in via Lepontina in Milan.
