Transaction volumes in European student housing reached €10.5bn in 2025, representing a 75% year-on-year increase, with the UK accounting for more than half, according to specialist firm Bonard.
Bonard’s 2025 student housing annual report, released this week, found that global macro conditions last year became more supportive for the sector, and that demand rose across Europe while new supply remained structurally constrained in many cities.
During an online presentation of the report, a live poll found that 78% of respondents plan to increase their exposure to student housing.
“The poll results clearly show growing confidence going into 2026,” said Samuel Vetrak, CEO of BONARD. “Student housing remains one of the most compelling real estate asset classes, and for many investors it is increasingly the first allocation beyond traditional sectors.
“Student housing is no longer a niche sector. It is a mainstream asset class where data, execution and long-term strategy increasingly determine success.”
According to the report, around 62,000 beds were delivered across 140 cities in 2025, yet major European study destinations still only meet about 29% of demand.
The pipeline in these 140 cities is forecast to add 281,490 beds over three years. Even so, student growth is set to outpace new supply, reinforcing rental growth prospects and investor interest, and supporting a “flight to quality” as more students seek higher-standard accommodation.
Occupancy remained elevated, averaging 96% in Europe, despite some softening in the UK and France due to competition, affordability pressures and new deliveries of purpose-built student accommodation (PBSA). Average student housing rents rose 3.1% globally in 2025, down from 5.4% in 2024, but continental Europe exceeded that figure at close to 4%.
Yields stayed broadly stable, with prime compression in supply-constrained hubs such as Amsterdam, Barcelona, Milan and Copenhagen, and higher yields in emerging markets like Poland, helping maintain PBSA among the top-priority sectors for institutional investors. Studios remain the dominant product type, accounting for most new schemes, but average unit sizes are gradually shrinking as affordability, regulatory requirements and urban constraints drive more compact layouts.
Transaction volumes across the UK and continental Europe reached €10.5bn in 2025, representing a 75% increase year on year. The UK accounted for nearly €6bn of that activity, but continental Europe’s share rose from roughly 30% in 2019–2020 to about 44% in 2025, a trend expected to continue as portfolios scale in markets like Spain, Germany and France.
Bonard’s live online polling also found that 83% of respondents expected rents to be higher by September 2026, mostly in the 0-3% or 3-7% range, implying continued and sustainable income growth.
Pedro Sousa, senior vice president at Brookfield, underlined the sector’s fundamentals, noting that “student housing continues to benefit from a structural demand-supply imbalance, particularly across European markets where development remains constrained”.
Carlo Matta, CEO of Nido Living, said: “Across continental Europe, student housing fundamentals remain compelling, with demand continuing to outpace supply. Deep understanding of the local market and drivers are key to sustainable growth.”
Juan Manuel Acosta, CIO of Rockfield Real Estate, pointed to rising professionalisation, saying: “As institutional capital scales across Europe, credibility and execution certainty are becoming increasingly critical to successful transactions.”
