EUROPE PBSA enters the mainstream

The discussion, which was also attended by EurobuildCEE, was moderated by Prof. Greg Clark, while the panellists included Steven van Weyenberg, the Alderman of the City of Amsterdam, Marc Unió Puig, the head of international promotion of Barcelona City Council, James Mathias, a senior portfolio manager at PGIM Real Estate London, and Samuel Vetrak, the CEO of Vienna-based rental residential analysts Bonard. Each explored how the sector is reshaping the housing environment across European cities, attracting institutional capital, and supporting balanced urban growth, offering their perspectives on how municipal planning, housing policy and global investment strategies can help purpose-built student accommodation (PBSA) to alleviate housing shortages and contribute to sustainable city development.

Market data presented by Bonard confirmed that student growth continues to far outpace accommodation supply across Europe’s major study centres. According to the analysis covering 13.5 mln students across 291 cities, PBSA market saturation remains low across the region: 17 pct in Madrid, 20 pct in Berlin, 30 pct in Greater London, and 37 pct in Amsterdam. However, according to Bonard’s estimates, the saturation ceiling rate is 77 pct in Madrid, 85 pct in Berlin, 86 pct in Greater London and 93 pct in Amsterdam, underscoring significant room for new development before the market reaches maturity. The representatives of Amsterdam and Barcelona highlighted the ongoing collaboration between public authorities and private developers, while PGIM Real Estate pointed to PBSA’s evolution into an institutional-grade investment class combining long-term stability with measurable social value.

What makes student housing unique is that it delivers both social and economic value. Cities need suitable accommodation for students, and investors are increasingly being drawn to its stable performance and strong long-term fundamentals.
Samuel Vetrak, the CEO of Bonard

One of the other main takeaways from the discussion was that student mobility is shifting toward Continental Europe and Asia from such traditional locations as the US, UK, Australia and Canada. Thus, Europe has emerged as a magnet for international students and institutional investors, while cross-border capital allocations into PBSA continue to grow, as investors seek stable, socially meaningful assets backed by robust occupier demand and stable income streams. Another key insight was that PBSA can be used as a strategic tool for cities, since well-planned student accommodation not only relieves pressure on the private rental market but also supports wider urban development goals – attracting talent, generating tax revenue, revitalising underused districts, and fostering community vibrancy. According to Bonard’s analysis of the rental data of German cities between 2021 and 2025, Berlin, Munich, Hamburg, Frankfurt and Cologne – all markets with limited PBSA stock – experienced noticeably stronger rent inflation in the private rental sector compared to those with a greater PBSA supply.

The discussion highlighted that student housing has entered the mainstream of institutional real estate. Its fundamentals – reliable occupancy, resilient demand, and measurable community impact – make it one of the few real estate asset classes capable of delivering both stable financial performance and social benefits.

Student housing has moved firmly into the mainstream of institutional real estate. Its continued expansion reflects both strong fundamentals and growing recognition of its social importance.
Samuel Vetrak, the CEO of Bonard