Savills ranks Eindhoven number one for student housing investment in the Netherlands

According to the research report 'Student housing in the Netherlands: A market on the move' published today by international real estate advisor Savills, the discrepancy between supply and demand will be the largest in the student city of Eindhoven in the coming years. This is reflected in Savills Student Housing Ranking for investors.  

The Savills Student Housing Ranking for investors is based on three elements of supply and demand: changes in the pipeline, the deficit per student (current and future), and the pipeline in relation to the number of students. A high ranking indicates a shortage in the market or the prospect of a growing shortage. A tighter market with high demand and limited supply represents opportunities for investors in these cities. One thing that stands out is that the top seven consists entirely of university cities. These are the locations where student numbers are especially likely to grow, thereby increasing pressure on the student housing market.

Jordy Kleemans, Head of Research & Consultancy at Savills, comments: “Although the shortage in student housing stock will decline in the coming years, it will remain substantial. It is noteworthy that the differences between the cities are large – some cities, such as Utrecht and Groningen are anticipating an increase in student population with a relatively large pipeline of new projects, while other cities such as Eindhoven lag behind.”

Bas Wilberts, Head of Alternative Investments at Savills, adds: “Investors are increasingly seeing the student housing market as an addition to their existing portfolio, boosting investment volumes fivefold to reach €500 million in 2016 and narrowing the difference between the net initial yields for traditional housing and student housing. 2017 was a year dominated by the launch of new-build developments, due on the market in the coming years. As a result, large investment volumes are once again expected in 2018 and 2019.”

Download the full report here.