Student housing – an asset class with a proven track record
As a matter of fact, people are always studying. Especially during recessions and times of crisis, investment in education increases. Add to this the growing mobility of a middle class on the rise, such as in the Asia-Pacifics, as well as the well-known shortage of student accommodation at famous universities in the English-speaking world, and it quickly becomes clear why this asset class has not only held up but proven its track record, even through the Covid pandemic. In 2019, Purpose-Built Student Accommodation (PBSA) investments totaled $17.7 billion worldwide – being above $16 billion for the fourth year in a row. And even the 2020 pandemic year showed a slight increase in student numbers.
Aareal Bank is currently involved in the financing of 35 student housing projects worldwide, including cities such as London, Edinburgh, and Melbourne, and plans to further expand its global market share in this segment.