Credit: GRI ClubItaly’s growing demand for Student Living presents attractive opportunities
Exclusive GRI report: Roundtable investor discussion addresses long-term vision for Italy’s maturing student housing market
August 21, 2024Real Estate
Written by Helen Richards
Major Italian cities such as Milan and Rome are seeing a substantial demand for Purpose-Built Student Accommodation (PBSA), driven by the combination of large student populations and inadequate supply of housing.
In fact, recent GRI Club meeting discussions addressed research that revealed Italy’s student housing provision rate to be approximately 4%, amid a European average of 12%. The investment opportunity is considered enormous, with attention coming from both Italian and international players with a focus on the long-term vision for growth in the market, and a commitment to establishing a presence and seeing through long-term projects.
The latest GRI report presents the main takeaways from the recent GRI Club Meeting held in Milan, which gathered the most prominent players in the sector, including domestic and international investors.
The market is often compared to other flourishing European student accommodation markets, including Spain and the UK, and lessons can certainly be learnt from these markets. However, Italy is a unique beast, which international experience alone cannot overcome.
Challenges include lengthy planning processes, high remediation costs, and municipal interference. International developers must adapt to the local context, including the specific economic constraints of Italian students and their families, which require tailored strategies, differing from the international trend where initial demand was driven by international students.
Operators in the student housing market are even exploring short-term rentals during off-peak periods to maximise revenue. (Credit: GRI Club)
Strategies within construction cost management include the early involvement of contractors, allowing for better planning and optimisation of construction choices; collaborative contracting, allowing for the collation of experience of various general contractors, architects, and other stakeholders, allowing a close working relationship right from the design phase and optimising construction; and the use of off-site construction methods, particularly prefabrication.
Discussions also addressed the importance of the use of proptech in student living properties, particularly for energy optimisation, considering the high occupancy and energy intensity of the buildings, thus making energy management a significant cost factor.
Access all the exclusive takeaways from the roundtable discussion in the exclusive GRI report here, including matters such as managing stakeholders such as universities and the community, mixed-use and short term rental strategies within student living, and much more.
Major Italian cities such as Milan and Rome are seeing a substantial demand for Purpose-Built Student Accommodation (PBSA), driven by the combination of large student populations and inadequate supply of housing.
In fact, recent GRI Club meeting discussions addressed research that revealed Italy’s student housing provision rate to be approximately 4%, amid a European average of 12%. The investment opportunity is considered enormous, with attention coming from both Italian and international players with a focus on the long-term vision for growth in the market, and a commitment to establishing a presence and seeing through long-term projects.
The latest GRI report presents the main takeaways from the recent GRI Club Meeting held in Milan, which gathered the most prominent players in the sector, including domestic and international investors.
The market is often compared to other flourishing European student accommodation markets, including Spain and the UK, and lessons can certainly be learnt from these markets. However, Italy is a unique beast, which international experience alone cannot overcome.
Challenges include lengthy planning processes, high remediation costs, and municipal interference. International developers must adapt to the local context, including the specific economic constraints of Italian students and their families, which require tailored strategies, differing from the international trend where initial demand was driven by international students.
Operators in the student housing market are even exploring short-term rentals during off-peak periods to maximise revenue. (Credit: GRI Club)Challenges in development was a prominent topic during discussions, with participants highlighting obstacles in the realms of planning, regulatory compliance, and finance. With rising construction and labour costs, planning and cost management before and during construction must be meticulous and detailed in order to make projects feasible.
Strategies within construction cost management include the early involvement of contractors, allowing for better planning and optimisation of construction choices; collaborative contracting, allowing for the collation of experience of various general contractors, architects, and other stakeholders, allowing a close working relationship right from the design phase and optimising construction; and the use of off-site construction methods, particularly prefabrication.
Discussions also addressed the importance of the use of proptech in student living properties, particularly for energy optimisation, considering the high occupancy and energy intensity of the buildings, thus making energy management a significant cost factor.
Access all the exclusive takeaways from the roundtable discussion in the exclusive GRI report here, including matters such as managing stakeholders such as universities and the community, mixed-use and short term rental strategies within student living, and much more.
