In the first of our Purpose-Built Student Accommodation (PBSA) papers, we explore why Europe’s nascent but quickly growing PBSA sector is increasingly moving towards the top of investor wish lists.
- There are more than 14 million students across Europe, yet only one-in-five domestically mobile or international students are able to access a PBSA bed.
- Underpinned by 70 universities ranked in the world’s top 250, Europe’s higher education sector benefits from supportive polices aimed at lifting attainment rates, along with a large domestically mobile student base and rising international student numbers.
- Wider housing market shortages and growing demand for rental accommodation are also contributing to the growth in PBSA demand. With an undersupply of modern, high quality PBSA beds, favourable demand-supply dynamics are supportive of rental growth.
- The sector is increasingly catching the eye of investors. In INREV’s 2025 Investor Intentions survey 67% of investors reported a preference for investing in European PBSA, well above the five-year average (35%) and up from 45% in INREV’s 2024 survey.
- With strong demand-supply fundamentals and countercyclical characteristics, Europe’s PBSA sector represents a strong asset class, offering investors an attractive, scalable opportunity.