Studying the rent rises

The purpose-built student accommodation (PBSA) sector emerged from the Covid crisis relatively unscathed, with solid demand levels and occupation rates. But a new trend has now become evident: rents keep increasing. In some regions, they are rising at a much higher pace than previously observed. Rent levels have been growing steadily in the last few years in the private PBSA sector by around 1–3 pct on average. However, new research conducted by the rented residential specialist Bonard shows that, on average, rents increased by 9.7 pct (970 bps) in the academic year ending September 2022, with some very significant spikes occurring in the CEE region. What’s driving this new trend? According to research by Bonard, which included an analysis of rents charged by 172 private PBSA providers across Europe and one-on-one discussions with players in the sector, the reasons behind this trend are shaped by the interplay between increased demand and rising inflation and interest ra