Investments in Student Housing: opportunities and returns in 2025
The number of international and off-site students in Italy continues to grow, also thanks to the increase in the attractiveness of the country's universities, highlighting the need to increase the supply of beds for university students.
Article published on January 24, 2025 on homacoop.it; the data refer to that date.
Investments in Student Housing: opportunities and returns in 2025
The number of international and off-site students in Italy continues to grow, also thanks to the increase in the attractiveness of the country's universities, highlighting the need to increase the supply of beds for university students.
The number of university students in Italy, in fact, has grown steadily in recent years, exceeding the threshold of 1.9 million in the last academic year, with an increase of 5% compared to the previous period. Thanks to the growth and attractiveness of its renowned universities, Italy also continues to attract international students, who grew by 75% compared to ten years ago, representing about 6% of total university students.
Overview of the Student Housing market in Italy
How much is it worth to make investments in student housing in our country today? Currently, more than 85,000 beds are available for students in Italy, with a growing presence of modern facilities managed by specialized operators such as HOMA, according to international standards. It is expected that, by 2027, the supply will reach 100,000 units, with an increase of about 28,000 beds over the next three years, mainly concentrated in 2026.
Supply and demand: a gap to bridge
Despite the expansion of the offer, the current coverage rate is still limited. It is estimated that only 4% of the total demand for student housing is met, highlighting a significant gap compared to other European countries. It therefore becomes necessary, in addition to being economically advantageous for those who invest, to make investments in student housing, both to help bridge this gap and make a difference on a social level, and to ensure high rates of return in a constantly growing market.
Growth and Investment Prospects
The student housing market in Italy, therefore, has a high growth potential, attracting both national and international investors. Already in 2023, investment volumes reached 290 million euros, with significant transactions, many of which involved the conversion of properties already existing on the market into student housing. This whole process has undergone a strong increase thanks to the new PNRR funds allocated by Decree No. 481/24.
Challenges and Opportunities
Despite the positive prospects accompanied by current investments in student housing, the sector faces several challenges, including:
- Demand and supply imbalance: even with new projects, the gap between available beds and student needs remains wide. There are those who claim that by 2026 (the current closing date of the MUR call), the construction of the planned 60,000 beds will not take place.
- Increase in rents: The high cost of PBSA housing may exclude certain sections of the student population.
- Geographic concentration: Most projects are concentrated in a few large cities, leaving smaller university cities uncovered.
Addressing these challenges requires targeted strategies, such as geographical diversification and the adoption of sustainable business models, to ensure the accessibility and quality of student housing. For this reason, with HOMA we have been carefully evaluating for months different solutions that we can implement with our investments in student housing, paying particular attention precisely to starting new projects even outside large urban centers, in cities more “student-friendly”, in order to expand the audience of beneficiaries of our services.
investments in student housing in Italy offer significant opportunities for investors and operators in the sector, with a growth potential that is still unexpressed. However, it is crucial to address existing challenges to ensure an adequate and affordable offer of housing for university students.
With HOMA Cooperative Society, already active also as a manager of university residences, we are at the forefront of the sector, both as direct managers of residences and offering our global service skills to companies that own real estate structures to be used for student housing.
Find out more here and contact us by filling out the form to learn more about our services.
This text is an automatic translation from Italian, produced with artificial intelligence (Amazon Translate).