The European student accommodation investment landscape continues to evolve, providing investors with new opportunities to deploy capital into the countries within this region, comprising fundamentally under-supplied student accommodation markets.
According to recent data from Real Capital Analytics, €13.6bn of purpose-built student accommodation (PBSA) transacted across Europe in 2017 – up 29% on the previous year. Although capital flows continue to be most prevalent in the UK, transactions across selected mainland European markets also increased, with Spain seeing over €600m of transactions, up from €100m in 2016.
Alongside GSA Coral’s investment in a Spanish portfolio in 2017, the Spanish RESA portfolio was acquired by AXA, CBRE Global Investment Partners and Greystar for €400m.
With limited developed stock in the market, it is expected that 2018 will not see the same level of portfolio deals transacted. However, increased development is expected, with institutional capital backing local development partners. GSA Coral is currently invested in Ireland, the UK, Spain and Germany, with over 3,000 additional beds on-program to be ready for occupation in September 2018.