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Calculated growth: Purpose-built student accommodation remains a safe and resilient asset class with plenty of growth upside in Central Europe
Following a prolonged boom, student housing’s ascent in Central Europe was stalled by the COVID-19 pandemic early last year.
Universities had to shut down, degree programmes were postponed, face-to-face events suspended, all while enrolling in universities abroad became virtually impossible. And yet, a full-scale slump in demand for student apartments in Central European countries never happened. International Campus Group found that the occupancy of modern student-housing properties in Germany rarely dropped below a level of 70 percent during the past two years. Even during the times of the tightest government restrictions, the concept of student housing and purpose-built student accommodation (PBSA), in particular, worked just fine. Having their own kitchenette and shower room enabled PBSA residents to live and study autonomously and contact-free, even if many community areas had to be shuttered temporarily. In other words, the situation did not cause demand to collapse,