Accordind JLL Italian Student Housing report 2022 Milan, Rome, Turin and Florence are among the most interesting cities for investors. In Rome and Bologna greater demand to be satisfied. By 2025 20,000 new beds (of which 7,000 in Milan)
In the first 9 months of 2022, the Student Housing sector recorded growth in capital market investments in Europe. In Italy it is a sector with ample room for growth, thanks to potential demand and the interest shown by investors. This is what emerges from the latest report by JLL, world leader in services and investment management for the real estate sector.
The positive momentum of the sector is reflected in the activity of investment volumes: the first nine months of 2022 recorded 7.1 billion euros1 in Europe and the United Kingdom, +10% compared to the same period of 2021 and +17% compared to the average of the last 5 years. The United Kingdom is confirmed as the country with the highest number of investments, followed by Spain and Denmark. In Italy, the student accommodation sector is a developing asset class, with great investment potential and geographic diversification. Student housing in Italy is currently of great interest to investors, above all due to the lack of an adequate offer in the vicinity of large universities and the constant increase in students, above all thanks to the international component.
The number of Italian university students reached a total of around 1.8 million in the 2021/2022 academic year. Of the major cities, Rome and Milan have the highest number of students, followed by Turin and Bologna. Analyzing the data relating to the origin of the students (latest data available for the 2020/2021 academic year), it emerges that Bologna, Milan and Turin have the highest percentage of foreign students out of the total (9%). Bologna also has the highest percentage of students from other regions, almost half of the total.
The current supply of student accommodation in Italy is estimated at over 60,000 units: most of them (66%) are managed by regional structures within the framework of the DSU (Diritto allo Studio Universitario), 15% by private operators, 11% directly from universities, while the remaining 8% is managed by private or public student housing structures.
Comparing the data relating to the number of off-site students with the supply of beds in student accommodation, it emerges that in Europe there is a potential demand which does not correspond to an offer of this type of approximately 2.2 million bed places. In Italy, in particular, the supply of housing currently corresponds to around 20% of potential demand, with around 260,000 beds that would be needed to satisfy it. To consider then the heterogeneity of the offer which sees in Italy a limited number of modern student residences, comparable with those of other mature markets at European level.
Considering the main university cities monitored, Florence has the highest coverage figure (47%), while the cities with the least coverage, also in view of the high number of students, are Bologna (22%) and Rome (10% ). Padua, Turin and Milan have a “satisfied” demand just under 30%. In particular, the case of Milan should also be considered in the light of a greater number of non-resident and international students and the attractiveness of the city from a university point of view – an element that has favored the development of a significant pipeline for the coming years.