Is this the next big thing of the real estate market?

Is this the next big thing of the real estate market?

2019’s CEE Property Forum conference was held in Vienna. Representatives of student housing gave us some interesting speeches about this field, and its prosperous future in the region.
Student housing was a privilege of Western Europe for many years, but recently, the market started to boom in our region as well. “There are around 15-20 thousand foreign students in Budapest, who barely have access to modern student housing. The top location is near the medical university. The hardest challenge regarding the new development plans is the construction costs. They are usually 30-40% higher than a few years ago, so development wouldn’t be profitable without prices as high as €600-700 for a room. In spite of that, we have plans, and we want to get some experience in the actuation too, especially in making use of the building during the summer months.” – said Bálint Botos, Managing Partner of Forestay Group.
According to Gary Clarke, CEO of Milestone, 7% of foreign students have access to a private dormitory in Vienna. That means around 3670 beds. In other countries of the region this is an entirely new field, and besides Eastern and Central Europe, there are huge possibilities in Northern Italy as well.
“Along with Germany and Austria, other countries of the region are growing strong as well, thanks to the Erasmus program. Poland seems to be the most promising, although the regulations might differ from the ones in Western Europe. In the Netherlands or Germany, regulations of private dormitories are somewhat similar to ones applying to private dwellings, whereas in Eastern and Central Europe, the process is closer to building hotels.” – says Rainer Nonnengaser, CEO of International Campus.

Reference: portfolio.hu