Private student housing is becoming more and more popular in Poland. For students, it is the perfect start to life on their own. On the other hand, investors have noticed a large absorption on the market, which currently meets less than 10% of the demand for student accommodation. Over the last four years, investments of international capital in PBSA have been one of the most interesting areas of the real estate market.
High returns
In the context of relatively low investment costs, PBSA (Purpose Built Student Accommodation) is a safe alternative for the office and retail sector - the more so as returns on student housing investments in Western markets have been stable for several years at 4.5 - 6 %..
The Polish market meets many conditions conducive to investing in private dormitories, including:an appropriate scale of academic centers, wide access to the cultural and gastronomic offer, a large student population and good conditions for studying. Therefore, the interest in investing in the PBSA sector in Poland is constantly growing.
Investors see a large absorptive market, which currently satisfies just over 10% of the demand for accommodation for students. The forecasts regarding the constantly growing number of foreign students in Poland and attractive rates of return on investment are also important.
Generation Z is coming
PBSA is the first real estate sector addressed to Generation Z. These young people are entering adulthood and we know more and more about them - we notice that they look at property, security and capital differently from older generations. That is why student housing is not only about rooms, but about a lifestyle. As many as 76% of students point to the great importance of high-quality common areas, and 81% to the need to belong to organized groups and organizations building a community around the dormitory., a 81% na potrzebę przynależności do zorganizowanych grup i organizacji budujących społeczność wokół akademika.
The OECD predicts that the number of students studying abroad will increase from 5 million in 2019 to 25 million in 2025. Due to the high quality of life combined with relatively low prices, Polish cities have been attracting more and more foreign students for years. They are and will continue to remain the main recipients of PBSA in the future. Importantly, it is also a group that does not immediately look for a private apartment and most willingly extends their stay in the dormitory for the next years.
Our Partner is Golub GetHouse, the owner of LivinnX
WORKSHOPS: PBSA in Poland
We invite you to a workshop that focuses on the analysis of the prospects for the development of the PBSA market in Poland in the context of a specific company and investment. The workshop includes:
- Presentation of the conclusions from the report
- Brainstorm in the context of the client's investment
- In the case of a development company: discussion of the client's assets from the point of view of the PBSA investment
- In the case of a service company: analysis of the customer's service or product in the implementation or management of PBSA
The workshop will result in a thorough knowledge of the prospects for the development of the PBSA market in Poland and, depending on the nature of the client's business:
- Preliminary analysis of the potential of the available location from the point of view of investment in student housing
- Outline of the strategy for implementing the services in PBSA
ThinkCo
We are the first advisory company in Poland specializing in new ideas for real estate. We combine the knowledge of researchers and architects with business world experience, creating innovative processes, products, and services for the real estate market.
We focus on interdisciplinarity. Our specialists come from various environments and represent different experiences, constantly expanding the range of our capabilities and knowledge. The role of ThinkCo is to use this knowledge as an opinion maker in the process of implementation of new solutions on the real estate market.