Dubai – March 8, 2020 – Supported by continual government initiatives to strengthen the education sector and position Dubai among the top education providers in the region, coupled with the increasing presence of international education providers, Dubai's student housing market is set to benefit and provide new investment opportunities.
Student housing is a form of housing which typically combines private living areas with common facilities and amenities and are three types of student housing:
University Affiliated Off-Campus Accommodation
Purpose Built Student Accommodation (PBSA) Developments
During the 2018 - 2019 academic year, the total number of students enrolled within higher education reached circa 53,200. By the end of 2019, existing supply for student housing in Dubai reached circa 5,200 beds across approximately 20 projects mostly located in DIAC, Dubai Land and Dubai Media City. Most of the future supply of student accommodation is expected to be located within DIAC, adding approximately 3,000 rooms to the market by the end of 2020. These developments are planned to be developed by a mix of international and local companies.
There are several demand drivers which may potentially impact the demand for student housing within Dubai over the medium to long term:
Higer education expansion adn program variety
Moving forward, it is anticipated that the student share split by region will shift in line with the wider macroeconomics trends. Moreover, PBSA developments are expected to remain an attractive investment, particularly if rental income is secured with an established operator. Furthermore, most of these buildings comply with the fundamentals of Sharia Law and are expected to benefit from potential growth in line with demographic trends.
For more information on Dubai student housing, read the attached report here.