PATRIZIA has launched its inaugural Student City Index, which tracks the most attractive cities in Europe for purpose-built student accommodation (PBSA) investment.
Explosive growth in European student numbers in the past decade has driven strong demand for PBSA – a demand that continues to outpace supply. As a result, a broader and more diverse PBSA investment universe is emerging, requiring a granular, city-level approach to effectively calibrate risk and return.
“Student housing is fast becoming a cornerstone of institutional living strategies. This research supports smarter capital deployment by highlighting where strong fundamentals align with liquidity, and why a city-by-city lens is critical for success in this dynamic market.
“With global megatrends such as urbanisation, international mobility and the demand for higher education accelerating, PBSA stands out as an attractive alternative within the living sector with a very resilient outlook.”
Antonio Marin-Bataller, Head of Investment Management Living, PATRIZIA
The original research by PATRIZIA provides comprehensive, data-driven ranking of over 180 university cities across 21 European countries, offering a city-specific lens to help institutional investors identify the most compelling PBSA markets based on demand fundamentals, liquidity and long-term growth potential.
Top 10 cities for PBSA investment attractiveness
- London (UK) – Europe’s leading PBSA market, offering unmatched international student demand, institutional depth and long-term rental resilience.
- Paris (France) – combines elite academic institutions with a deep student population and constrained supply, driving consistent investment appeal.
- Berlin (Germany) – a dynamic capital with strong fundamentals, liquidity, and innovation-driven demand, making it Germany’s top PBSA destination.
- Vienna (Austria) – offers affordability, high quality of life, and a globally recognised higher education system, supporting resilient PBSA demand.
- Madrid (Spain) – a vibrant student hub with attractive yields and chronic undersupply, underpinned by growing international enrolments.
- Copenhagen (Denmark) – a progressive university city with strong rental growth prospects and international draw, supported by lifestyle appeal.
- Brussels (Belgium) – a multilingual capital city with high student mobility and institutional momentum in the PBSA space.
- Stockholm (Sweden) – features strong fundamentals, a well-educated population and increasing demand for modern student accommodation.
- Zurich (Switzerland) – high university gravitas, premium living standards and a deep pool of international students drive its PBSA credentials.
- Barcelona (Spain) – a major university hub with international cachet; although the PBSA market is established and undersupplied, it is a competitive investment market.
Other top-ranked cities include Groningen, Munich, Lyon, Milan, Grenoble, Glasgow and Cambridge, showcasing the diversity of investment opportunities across Europe, from global capitals to innovation-driven university towns.
Key country insights from the Index
UK: Home to six of the top 20 cities including London, Manchester, Bristol and Edinburgh. Nine UK cities are classed as ‘prime-established’ markets.
Germany: Berlin and Munich are in the top 20, while Darmstadt and Aachen emerge as high-potential, innovation-focused hubs.
France: Paris and Lyon top the rankings, while Toulouse, Grenoble, and Bordeaux benefit from large student populations and strong post-graduation opportunities.
Spain: The top three cities – Madrid, Barcelona and Valencia – all rank within the top 50 and are clustered as prime-established markets, supported by limited supply, high demand and liquidity.
Italy: Milan leads as a prime-established market; Rome and Bologna also score highly, but the country overall remains underpenetrated.
Benelux: Amsterdam and Brussels are among the top 20, with Eindhoven, Utrecht and Rotterdam identified as cities with strong emerging potential.
“Institutional investors need more than macro-level guidance because PBSA performance is shaped by highly localised factors. Our Index gives them a reliable framework to identify not just where the student population is growing, but where the conditions for sustainable investment returns are most favourable.”
Dr Marcus Cieleback, Chief Urban Economist, PATRIZIA
According to PATRIZIA, PBSA continues to offer higher yields and often more dynamic rental growth opportunities than traditional residential segments, while providing defensive income through short tenancy durations and counter-cyclical demand trends. Structural undersupply across Europe and increasing international student mobility further support the asset class as an attractive institutional strategy.
