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How International Students are Fuelling the Resilience of the UK PBSA Market

Understanding Global Demand for PBSA Market

Written and contributed by QIP's Marketing Team

The UK has long been a global beacon of academic excellence, attracting students from around the world. This global appeal directly contributes to the growing demand for the UK Purpose-Built Student Accommodation (PBSA) sector, as students look for accommodation designed to provide an ideal solution, offering not just proximity to universities but also community-focused amenities and essential support services. With the UK’s reputation as a leader in higher education and its growing base of international students,private equity real estate investors are well-positioned to capitalize on the rising need for quality student accommodation

, ensuring stable returns even in challenging economic conditions.

Read More: UK Purpose-Built Student Accommodation (‘PBSA’) – Understanding the Factors Behind This Resilient Sector

Why the UK remains attractive for international students

The UK continues to attract a growing number of international students, with applications rising by 26.1% between 2014 and 2023, according to Colliers. Notably, 84.8% of these students are from non-EU countries, underscoring the UK’s strong global appeal. India and China remain key contributors to this growth. India’s outbound student numbers hit 1.1 million in 2022, projected to reach 1.5 million by 2025, while in the 2022/23 academic year, more than 154,000 Chinese students were studying in the UK. 

Savills’ recent article on UCAS application numbers and their impact on PBSA also highlights the UK’s appeal as a desirable destination for students. Despite challenges for the AY 2024/25, the latest UCAS data reveals a 4.7% increase in international undergraduate applicants for early-deadline courses, showing early signs of optimism for UK higher education. 

Dr Jo Saxton CBE, Chief Executive at UCAS said, “It’s welcome news to see that global confidence in the UK’s higher education sector remains strong, with an increase in international undergraduate applicants to UK universities and colleges for early deadline courses.”

World-Class Institutions

One of the biggest draws for international students is the UK’s reputation for academic excellence. Particularly renowned are its Russell Group universities—24 elite institutions that consistently rank among the top globally. These universities are known for:

  • World-Class Education and Research Excellence: Russell Group universities offer a rigorous academic environment and are leaders in cutting-edge research, drawing top-tier international students seeking contributions to advancements across various disciplines.
  • Strong Global Reputation: UK degrees are highly regarded by employers worldwide, enhancing graduates’ employability and making the UK a top destination for higher education.
  • Career Prospects: With strong ties to industries and businesses, UK universities provide students with valuable networking opportunities and a competitive edge in the global workforce.

Beyond Academics

The UK offers a rich cultural experience that appeals to students worldwide. Its multicultural environment fosters cultural exchange and language development, creating an inclusive and global atmosphere which allows for a network extending far beyond their studies. International students in the UK also consistently report high levels of satisfaction with their living and learning experience, citing robust support services, safe campuses, and access to social and welfare services as the main contributing factors.

The increasing international student population has further driven the demand for student accommodation, as living conditions play a critical role in students’ decisions to study abroad.

Why Students Prefer to Stay in UK PBSAs

UK Purpose-Built Student Accommodation is a preferred choice for international students as it provides more than just a place to live—it offers a sanctuary for students to thrive academically, socially, and personally.

UK student housing platforms work with student accommodation providers to meet the unique needs of students, with features like 24-hour security, on-site management, and a range of student support services that create a safe and comfortable environment.

While PBSAs may seem more expensive than traditional rentals, they often offer better long-term value, as they are typically all-inclusive, covering utilities, Wi-Fi, and maintenance. This eliminates the worry of unexpected expenses and provides flexible lease terms suited to international students’ needs. Additionally, such student accommodations are strategically located near universities, saving students time and money on commuting and ensuring easy access to libraries and extracurricular activities.

QIP’s PBSA portfolio stands out in this sector, providing not just housing but a supportive, engaging environment where students can flourish. In partnership with Prestige Student Living, the premium brand of Homes for Students, QIP offers properties equipped with lounges, gyms, study rooms, cinema rooms, and on-site laundry facilities. These amenities foster a community atmosphere, enhancing students’ academic focus and social connections, creating a holistic living experience that sets these accommodations apart.

Why UK PBSAs Present a Great Investment Opportunity

PBSAs are particularly appealing to overseas students, who are 60% more likely to live in one compared to their domestic counterparts. The influx of international students not only drives demand for quality accommodation but also exacerbates the supply-demand imbalance, creating ripe investment opportunities for private equity investors. University admissions are at record highs, yet the availability of student accommodation has not kept pace. According to PBSA News, this shortfall in student housing has driven rental prices higher, making it an attractive time for investors to enter the market.

Student accommodation investment firms stand at the heart of these opportunities Looking ahead, the demand for PBSA is only expected to grow. The UK anticipates an influx of 2.2 million students by 2026, yet current supply projections indicate a gap of around 620,000 beds. With demand consistently outstripping supply, the sector presents an excellent investment opportunity for investors in private equity real estate, who can capitalise on the strong potential for growth as the need for quality student housing continues to rise.

Read More: Student Accommodation Continues to be a Hot Market: 3 Key Considerations Before Investing in the Sector

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