Student Accommodation Market Size & Outlook, 2025-2033

Student Accommodation Market Size

The global student accommodation market size was valued at USD 11.44 billion in 2024 and is projected to grow from USD 12.02 billion in 2025 to reach USD 17.81 billion by 2033, growing at a CAGR of 5.04% during the forecast period (2025–2033).

The global student accommodation market is driven by several interlinked factors. Urbanization and the demand for housing near academic institutions have led students to prefer accommodations that offer convenience, safety, and accessibility. Additionally, the rise of international student mobility, particularly in countries like the UK, Australia, and Canada, has intensified the need for well-equipped, student-centric housing. The growth of co-living models is also transforming the market, as students seek affordable housing that fosters community and flexibility.

Furthermore, the integration of smart technologies, such as digital access, high-speed internet, and energy-efficient systems, enhances the appeal of modern accommodations. Together, these drivers reflect a shift toward lifestyle-oriented, connected, and location-smart student housing that meets the evolving expectations of domestic and international students alike, encouraging more investment and innovation in the sector.

Latest Market Trends

Rising Demand for Purpose-Built Student Accommodation (pbsa)

The global student accommodation landscape is transforming demand shifts towards purpose-built student accommodation (PBSA), as students increasingly seek modern, secure, and well-equipped living environments tailored to their academic and social needs. Traditional housing often lacks essential amenities such as high-speed internet, study areas, and proximity to campuses, making PBSA a more attractive option. This shift in preference is also driving significant investment in the sector.

• For instance, according to Hines, PBSA investments in Europe rose from 1.9% to 5.3% of total real estate inflows between 2019 and 2024, highlighting its emergence as a mainstream asset class. In the UK alone, Knight Frank reported PBSA investments reached £3.87 billion in 2024. an increase of 14% year-on-year, with £575 million deployed in Q4 alone.

These trends reflect growing investor confidence and the resilience of the sector amidst rising global student mobility.

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Student Accommodation Market Growth Factor

Growth in the Global Student Population

One of the key drivers of the global student accommodation market is the continuous rise in the global student population. With the growing emphasis on higher education and increased access in developing regions, the demand for student housing is accelerating rapidly.

• As per UNESCO, global tertiary education enrollment reached 264 million in 2023, more than doubling from 100 million in 2000. Of these, nearly 6.9 million students studied abroad during 2022–2023, reflecting a more than threefold increase in international student mobility since 2000.

This surge places immense pressure on host countries and university towns to expand infrastructure, especially housing. International students, who typically seek secure, convenient, and furnished living spaces, are driving investments in purpose-built student accommodation (PBSA), co-living models, and hostel upgrades, making this segment one of the most dynamic within the real estate sector.

Market Restraint

High Cost and Affordability Issues

One of the major restraints in the global student accommodation market is the high cost and limited affordability of quality housing options. Purpose-built student accommodations (PBSA), while offering premium amenities and security, are often priced beyond the reach of many students, particularly in developing countries. Rising tuition fees and living costs further strain student budgets, making affordability a critical concern.

Additionally, private developers prioritize profit margins, leading to a shortage of low-cost housing alternatives. This disparity is more pronounced for international students who face currency exchange issues and higher living expenses. As a result, affordability challenges hinder market inclusivity and limit access to suitable accommodation for a broader student population.

Market Opportunity

Government Support and Education Policies

Government initiatives and policy reforms continue to open new avenues in the global student accommodation market. Countries are actively enhancing higher education access, international mobility, and student welfare through supportive regulations.

• For instance, in July 2025, Dubai's Executive Council introduced comprehensive measures: extended student visas, increased scholarships, and structured employment schemes targeting a 90% graduate job-placement rate. Similarly, in June 2025, Jawaharlal Nehru University in India implemented up to 80% semester fee reductions for international students to boost enrollment.

These reforms not only drive international student influx but also generate sustained demand for quality student housing. By promoting longer academic stays and easing financial burdens, such policies create lucrative opportunities for real estate developers and accommodation providers to expand their footprint in key global education hubs.

Regional Insights

The student accommodation market in North America is expanding due to rising international enrollments and the growing preference for organized housing over informal rentals. Institutions are increasingly partnering with private developers to construct purpose-built student accommodations (PBSA) to meet rising demand. Additionally, technological integration, including digital access, smart utilities, and community-focused amenities, is enhancing student living experiences. High tuition and living costs are prompting the need for flexible lease structures, making affordable, shared accommodations and co-living models more attractive for both domestic and international students.

U.s. Student Accommodation Market Trends

• The U.S. market is witnessing steady growth as top-tier universities attract international students and domestic enrollment rebounds post-pandemic. Cities like Boston, New York, and Los Angeles see high occupancy rates. Real estate developers such as American Campus Communities and Greystar are actively investing in PBSA near university hubs. The focus on amenities, security, and flexible leasing models is enhancing competitiveness and meeting the evolving expectations of Gen Z students.
• Canada's market is expanding due to a sharp rise in international student enrollment, especially from India and China. Major cities like Toronto, Vancouver, and Montreal are experiencing supply shortages in on-campus housing, driving demand for purpose-built student accommodations (PBSA). Companies like Harrington Housing and University Suites are expanding their offerings to cater to this growing market. Government policies supporting education immigration further boost the need for quality student housing.

Asia-Pacific Student Accommodation Market Trends

Asia Pacific's student accommodation market is witnessing rapid growth, fueled by rising domestic enrollments and international student inflows. Urbanization and the expansion of higher education institutions in metropolitan areas are key drivers. The demand for secure, amenity-rich housing has surged, pushing developers to introduce modern, co-living spaces and technology-integrated properties. The region's youthful demographics and growing middle-class population are driving long-term investment in student housing infrastructure. Furthermore, smart city initiatives and infrastructure upgrades are supporting the expansion of student-centric housing solutions in rapidly developing urban corridors.

• India's student accommodation sector is witnessing rapid expansion due to a surge in domestic and international student enrollment. Cities like Pune, Bengaluru, and Delhi NCR are seeing increased demand for purpose-built student accommodation (PBSA). Companies like Stanza Living and Your-Space are investing heavily to meet this need. With over 40 million students in higher education, the gap between supply and demand is fostering strong opportunities for organized student housing providers.
• Japan's student accommodation industry is evolving with rising foreign student intake and a shift towards more modern, secure housing. Tokyo, Osaka, and Kyoto are key hubs. Initiatives like the "300,000 International Students Plan" have spurred infrastructure investments. Companies such as Global Agents and UniLife are offering furnished, tech-integrated units to attract students, while universities collaborate with developers to enhance accessibility and quality of accommodation.

Europe Student Accommodation Market Trends

Europe's market is driven by a strong influx of international students seeking high-quality education and culturally diverse academic environments. The region's established higher education institutions attract steady demand, prompting sustained investment in PBSA. Urban student populations are growing, necessitating expansion in both traditional dormitories and private accommodations. Additionally, regulatory frameworks are supporting the sustainable development and renovation of ageing infrastructure. There is also an increasing shift towards modular and energy-efficient designs, as students become more environmentally conscious, creating opportunities for innovative housing developers and investors.

• Germany's student accommodation market is witnessing growing demand due to rising international student inflows, especially in cities like Berlin, Munich, and Frankfurt. The DAAD reports over 370,000 international students in 2023, straining traditional dormitories. To address shortages, developers like The Fizz and Student One are expanding purpose-built units. Government-backed subsidies and public-private partnerships are further boosting development in affordable and eco-friendly student housing projects across the country.
• The UK's student accommodation industry is mature yet evolving, driven by over 600,000 international students annually (HESA, 2023). Cities like London, Manchester, and Glasgow are hubs for premium PBSA developments by companies like Unite Students and iQ Student Accommodation. The shift from HMOs to professionally managed residences with modern amenities and mental health support services is reshaping student preferences, creating sustained demand and stable returns for investors.

Accommodation Type Insights

Purpose-built student accommodation (PBSA) holds a dominant position in the global student accommodation market due to its tailored facilities and secure environment. These accommodations are designed exclusively for students, offering modern amenities such as high-speed internet, communal lounges, study areas, and 24/7 security. The growth in international student enrollment and demand for high-quality living spaces further propels this segment. Additionally, PBSA is increasingly preferred over traditional housing due to its convenience, proximity to campuses, and maintenance-free living experience. The influx of private investments and real estate development in this sector continues to reinforce PBSA's market leadership.

Gender Accommodation Insights

Co-ed accommodation dominates gender-based segmentation due to its inclusive and flexible environment, making it a preferred choice among modern students. This segment offers a more diverse and socially engaging experience, aligning well with changing student preferences and global cultural shifts. Co-ed housing is widely available in both private and university-managed accommodations, often featuring shared common areas while maintaining privacy in personal living spaces. Its growing popularity stems from its cost-effectiveness and ability to foster social learning. Institutions and developers are increasingly investing in co-ed formats to meet the evolving needs of domestic and international student populations.

Education Grade Insights

Undergraduate students represent the largest segment in the global student accommodation market due to their higher enrollment numbers and longer duration of study. This group typically requires accommodation for three to four years, creating sustained demand. As most undergraduate students are younger and often relocating from different cities or countries, they prefer secure, community-oriented housing options. Purpose-built student accommodations and university-managed residences are particularly appealing to this demographic. Moreover, universities are focusing on enhancing campus life for undergraduates, leading to increased availability of accommodation solutions tailored to their lifestyles, academic needs, and affordability preferences.

Company Market Share

Companies in the student accommodation market are focusing on expanding their global footprint by developing purpose-built student housing near major academic hubs. They are investing in smart technologies, enhancing security, and offering flexible lease models to attract students. Additionally, partnerships with universities, a focus on sustainability, and tailoring amenities to student needs, like high-speed internet and communal spaces, are key strategies being employed to capture greater market share and ensure consistent occupancy rates.

Unite Students

Unite Students (The Unite Group plc) is the UK’s leading provider of purpose-built student accommodation (PBSA). Founded in 1991 in Bristol, it now serves around 74 000 students across 153 properties in 23 university towns and cities, offering modern en-suite rooms with utilities, WiFi and 24/7 security. Listed on the London Stock Exchange since 2000 and a FTSE 100 member since 2022, it combines direct-let, university partnerships and investmentfund operations, generating £299 million in revenue in 2024.

• In May 2025, Unite Students proposed the development of two new complexes offering a total of 2,300 bed spaces for Manchester Metropolitan University (MMU). This initiative is part of a joint venture investment worth almost £400 million.

List of key players in Student Accommodation Market

1. Unite Students
2. American Campus Communities
3. The Student Hotel
4. Scape
5. GSA (Global Student Accommodation)
6. Campus Living Villages
7. Collegiate AC
8. Yugo (formerly The Student Housing Company)
9. Harrison Street
10. Crosslane Group

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Recent Developments

• July 2025- Hospitality platform Lavanda established a strategic alliance with Student.com. The partnership allows Lavanda’s clients to integrate into Student.com's global student housing network, significantly expanding their booking reach.
• June 2025- Glasgow City Council approved a £70 million, 25-storey student residence for over 400 students. Amenities include rooftop terraces, study zones, a cinema and fitness facilities. Construction is set to begin in late 2025 and wrap up for the 2028 academic year.
• April 2025- One Homes (UK) announced Luna, Pakistan's first purpose-built student accommodation solely for women, in Lahore's education corridor. With a $435M portfolio in Pakistan, this first phase aims to serve upwards of 100,000 female students, addressing a reported 1.5 million-student housing shortage.