Europe Housing Providers Expect Occupancy Boosts

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Countries such as the Netherlands and Belgium can expect an increase in occupancy from European students. “What we see is that the Netherlands is benefiting from the Brexit in the sense that obviously the Erasmus students who normally quite often go to the UK for the English language, they now decide to go to the Netherlands,” said Rienk Oosterhof, chief real estate officer at The Student Hotel. The country’s strong reputation, with universities teaching mainly in English, has resulted in the provider expecting real growth in international student applications, particularly among EU students, he added. In Italy – The Student Hotel’s second biggest market, housing a lot of American students – students are a “bit more conscious” around safety regarding the global health pandemic when compared with European counterparts. “But at the same time, we see the students are really willing to make that step… standing still for one and half years at home, the need to go somewhere else, that need is, at the end of day, the driver of people moving again. So, yeah, I think it will definitely come up there again across Europe.” In Belgium, partner at Quares, Herman Du Bois said growth is expected to extend from domestic students, to come from international cohorts, again attracted to English taught courses. “More English taught courses are on the agenda and implemented not only for masters, but now also more for bachelor students,” he said. The country also looked to extend work rights for international graduates of Belgian institutions, which is attractive to non-EU international students, speakers highlighted. Growth and new business director at GSA Christopher Holloway noted that while Dublin and London, “particularly was always hugely driven by international students”, have not seen “quite the return yet to to pre covid”, the provider remains optimistic. Rental accommodation marketplace HousingAnywhere has calculated that average prices for single rooms in the UK capital were 3% lower in 2021 Q1 compared with Q1 in 2020. “We feel that that corner will turn once policy changes in different countries come into effect, particularly in China, and vaccine programs are completed and people just generally feel safer and are able to travel,” Holloway said. “So we’re optimistic, but there are specific markets even within the broader markets that are not quite there yet.” UK providers have been buoyed upticks in non-EU student’s applications and university acceptances rising by 5% last year, Andrew Smith, European PBSA investment advice at Cushman & Wakefield hinted, but occupancy rates had been impacted. The historically high 8.5% growth in applications to UK universities this year is driven by UK pent up demand and a huge rise in non-EU students applying, although EU applications to UK universities has fallen by 40%, he continued. Providers like Unite are 73% booked for the year ahead, which is “behind the 80% that they achieved this time last year”, he added. “The roll-out of the vaccine is moving slower than the world had hoped. And that is slowing down the recovery of the rental markets. On top of that, we expect supply shortages to return once the lockdowns are lifted,” HousingAnywhere CEO Djordy Seelmann said.