The Savills student housing ranking.
As in previous years, Savills has again created a ranking of Dutch cities, that provides insight into investor opportunities per city. The position of the cities in the ranking depends on factors such as changes in the pipeline, the current and future shortfall per student, and the pipeline in relation to the number of students and rent development.
This year, Leiden is expected to be the city with the best investment opportunities. Leiden moves up in the ranking by no fewer than 14 places compared to last year. This is due to a combination of factors. Firstly, the shortage in Leiden has increased. Secondly, there are fewer developments scheduled in the city compared to last year. This ensures that the estimated future shortage will be considerably higher than last year. Delft comes in second place. The final place in the top 3 is for last year’s number one, The Hague. The differences are for the most important part influenced by future shortages, as this is a dominant indicator for future occupancy. This is the reason why Arnhem and Zwolle are in 16th and 17th place respectively, and future surpluses are expected in these cities. As is the case in Breda, a city that has seen the largest increase in rents, which has caused this city to drop in the ranking by a number of places. Wageningen brings up the rear. This is partly due to the fact that the current quantitative shortages are limited and are also expected to remain limited in the future due to planned developments. In cities such as Wageningen and Arnhem, there is in fact room for new developments. This has to do with the fact that these cities also have qualitative shortages. This adds nuance to the list above.
"Leiden is expected to be the city with the best investment opportunities. Leiden moves up in the ranking by no fewer than 14 places compared to last year."
Student housing continues to be an interesting growth market in spite of the pandemic.
The student housing market is increasingly interesting for investors. In the short term there will be a drop in demand from foreign students but various suppliers are anticipating this development by providing PBSA as young professional units. In the long term the shortages will continue, as the group of international students is expected to increase because the coronavirus crisis is expected to have only a limited impact. The continued demand and associated increase in shortages are the result of high-quality education, relatively low tuition fees and the wide range of English-taught study programmes available. Brexit is also expected to drive up demand for study programmes in a general sense.