For years, investors in purpose-built student accommodation (PBSA) in Glasgow have relied on a well-worn playbook: target the West End. With its historic housing stock, proximity to the University of Glasgow, and long-standing reputation for affluence, the area has been seen as a safe bet. But in a rapidly evolving market, playing it safe can also mean missing the bigger picture.
By Jamie Harris, Harris Associates
The reality is this: Glasgow’s student market has outgrown the confines of the West End. A new centre of gravity is emerging, and it’s pulling east.
A market defined by demand
Glasgow is one of the UK’s most compelling student cities. With over 77,000 full-time students, it ranks third in the UK behind only London and Manchester. Enrolment has grown by 29% in just five years, driven by both local demand and increasing internationalisation. But this remarkable growth has not been matched by accommodation delivery.
There are only around 20,000 PBSA beds across the city, leaving roughly 75% of students without access to purpose-built accommodation. The result is a student-to-bed ratio of 3.2 to 1 – one of the most attractive in the UK from an investor’s perspective. It points to strong, sustained demand and provides a buffer against future oversupply, even as development ramps up.
Universities investing in the future
Glasgow’s higher education institutions are making bold commitments to their future. The University of Glasgow is leading a £1bn redevelopment, including a new Adam Smith Business School and a flagship postgraduate hub. The University of Strathclyde is delivering a Technology and Innovation Zone that will house some of the UK’s most advanced academic facilities. Meanwhile, Glasgow Caledonian University is progressing with a £32m campus enhancement, designed in part to boost its appeal to international students.
These investments underscore the scale and long-term health of Glasgow’s academic ecosystem, further strengthening the PBSA investment case.
West End: desirable, but facing headwinds
The West End remains an iconic part of Glasgow, but its PBSA growth has been held back in recent years. A de facto planning moratorium in key parts of the area has made bringing forward new schemes extremely difficult. Compounding this, the past few years saw significant shifts in build costs and debt pricing, making it harder for developers to bring viable projects to life, even where planning permission was secured.
However, the tide has turned. Demand for PBSA in Glasgow is booming, and investor appetite has returned with vigour. But with the West End still constrained by planning and pricing pressures, the question now is where that capital will go next.
East End: where culture meets opportunity
Enter the East End – specifically, Merchant City. Once under the radar, it has rapidly become one of Glasgow’s most dynamic and desirable districts, especially among students and young professionals. Packed with galleries, indie fashion, artisan coffee, craft beer, vinyl shops and vintage markets, Merchant City offers the kind of authentic, energetic lifestyle today’s students crave.
It mirrors what we’ve seen in other cities: students choosing culture and lifestyle over proximity. Think Shoreditch over South Kensington. Hackney over Hammersmith.
From END. and Forty Clothing to Monorail Records, Mr Ben’s vintage emporium, and live gigs at the Barrowlands, the East End is alive with character and culture. Students don’t just want proximity to lectures anymore, they want to live where the action is. Merchant City offers exactly that: vibrancy, identity, and walkable access to everything from universities to nightlife. It’s a lifestyle location that just happens to be one of Glasgow’s most underserved PBSA submarkets.
Early movers
Some institutional investors have already seized the opportunity. Blackstone’s acquisition of Havannah House was a clear signal, and new PBSA developments are now emerging in Trongate and surrounding parts of the East End. But this is still a market in its early innings, and that’s what makes it so attractive.
The fundamentals are right. The audience is there. And the cultural narrative is only growing stronger.
The opportunity ahead
Glasgow’s PBSA story is evolving. The market is no longer just about postcodes – it’s about aligning supply with where students actually want to live. The East End offers a unique combination of lifestyle appeal, deep-rooted demand and development potential.
As Glasgow’s student numbers continue to climb and the city’s reputation grows on the global stage, investors who embrace this shift now will be best positioned to capitalise, not just on yield, but on relevance.
