Savills : believes the Dutch student housing market passed the exam and has become an asset class in its own right

The introduction of the student loan system in 2015 caused a drop in enrolments. As expected in our Spotlight on Student Housing last year, enrolments at research universities for the year 2016/2017 are back on track again. The number of international students is increasing even more, now making up 11,4% of the total Dutch student population.

Developers have not ignored the growing demand for modern purpose built student accommodation and approximately 21,400 new student units are projected for the period 2017-2019, many of them catering to the need for rooms with own facilities.

Through increasing asset size, professional and visionary management by operators and optimised rental income, student housing is becoming a stronger investment product.

Bas Wilberts, Head of Alternative Investments at Savills Netherlands: 'The current pipeline of tailor made PBSA being operated by professional and internationally known operators is a sign that the student housing market is matured. And moreover, investment appetite shows that student housing in the Netherlands now is an asset class in its own right.'

We expect investment volume for 2017 will most likely equal the €425m investment volume of 2016. Whether this number will be outperformed depends on new schemes or portfolios that will be brought to the market.

Bas Wilberts presented the full report during the Class of 2020 meeting on Monday May 29 at Loyens & Loeff. To read more download the full report here.