{"id":143706,"date":"2026-05-07T15:46:06","date_gmt":"2026-05-07T13:46:06","guid":{"rendered":"https:\/\/www.we-wealth.com\/?post_type=news&#038;p=143706"},"modified":"2026-05-07T15:46:12","modified_gmt":"2026-05-07T13:46:12","slug":"student-housing-boom-in-italy-returns-of-up-to-7","status":"publish","type":"news","link":"https:\/\/www.we-wealth.com\/en\/news\/student-housing-boom-in-italy-returns-of-up-to-7","title":{"rendered":"Student housing boom in Italy: returns of up to 7%"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Student Housing and Co-Living: A Boom in Real Estate Investment in Italy<\/strong><\/h2>\n\n\n\n<p>In recent years, <strong>co-living<\/strong> has become one of the most dynamic sectors in <strong>European real estate<\/strong>. It is no longer limited to <strong>traditional residential<\/strong> properties but encompasses a range of <strong>hybrid asset classes<\/strong>\u2014from <strong>student housing<\/strong> to <strong>co-living<\/strong>\u2014that are well-positioned to capitalize on demographic shifts, international mobility, and new models of residential consumption. In Italy, the sector is still lagging behind, but it is growing rapidly. The driving force is <strong>student housing<\/strong>, supported by demand exceeding supply and competitive returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Real Estate Investments: Volumes Growing in 2025<\/h3>\n\n\n\n<p>\u201cThe Italian market for residential real estate investments recorded <strong>volumes of 1.2 billion<\/strong> in 2025, up 40% from the previous year. The sector accounts for approximately <strong>7% of total real estate investments in Italy<\/strong>,\u201d states <strong>Alberico Radice Fossati, country leader and head of capital markets at JLL Italy<\/strong>.<\/p>\n\n\n\n<p>A European comparison helps shed light on the phenomenon. \u201cIn Europe, the share of investments in purpose-built student housing has grown from 1.9% in 2019 to over 5% in recent years, a sign of growing investor interest in solid fundamentals and stable cash flows,\u201d adds <strong>Raoul Ravara, senior managing director at Hines<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Living asset classes: student housing leads the way<\/h3>\n\n\n\n<p>In <strong>Italy<\/strong>, however, certain specific trends emerge. Analyzing the breakdown of investments in 2025 \u201c<strong>purpose-built student accommodation (PBSA) leads with about 40% of the total<\/strong>, a share significantly higher than the European average (24%),\u201d continues Radice Fossati, with \u201cabout 500 million in 2025 and a pipeline of 28,000 beds by 2029 in major university cities.\u201d<\/p>\n\n\n\n<p>And the other segments? \u201c<strong>Built-to-sell<\/strong> accounts for about 25% of investments, followed by <strong>affordable social housing<\/strong> (15%) and <strong>multifamily\/built-to-rent<\/strong> (10%),\u201d Radice Fossati points out.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Student housing and co-living: new models of living<\/h3>\n\n\n\n<p>This growth is part of a deeper shift in the way we live. \u201cWe are witnessing a <strong>growing hybridization<\/strong> between student housing and co-living,\u201d observes <a href=\"https:\/\/www.we-wealth.com\/talents\/francesca-zirnstein\"><strong><u>Francesca Zirnstein<\/u><\/strong><\/a><strong>, CEO of Scenari Immobiliari<\/strong>. \u201cStudent housing offers services related to both hospitality and living\u2014including, among others, 24-hour reception, coworking spaces, a gym, and social areas\u2014while co-living integrates common spaces, personal services, and multifunctional environments.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Record demand and a structural gap: why student housing is growing<\/strong><\/h2>\n\n\n\n<p>The starting point, however, remains the structural <strong>imbalance<\/strong> between supply and demand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Italy-Europe gap in student housing<\/h3>\n\n\n\n<p>\u201cIn student housing, Italy\u2019s coverage rate of 4% remains drastically lower than the European average of 16%, highlighting a <strong>structural gap<\/strong> that even the development pipeline will not be able to fully bridge,\u201d emphasizes Radice Fossati, \u201cespecially when comparing the Italian figure with more mature markets, such as the UK or Denmark, where this figure stands at over 30% and 20%, respectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Growing demand: numbers and students living away from home<\/h3>\n\n\n\n<p>The numbers confirm the <strong>pressure of demand<\/strong>: with approximately 2 million students in the 2025\u201326 academic year and a 15% increase in international students, <strong>supply stands at around 80,000 total beds<\/strong>. \u201cStudent housing is a solid asset class because it meets a growing structural demand,\u201d says Ravara. \u201cIn Italy, less than 8% of students living away from home find a place in dedicated residences, compared to 23% in France and 14% in Germany, highlighting significant room for growth.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Yields of up to 7% and foreign capital: what attracts investors<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">International capital and the Italian market<\/h3>\n\n\n\n<p>The growing interest in the sector is also reflected in the <strong>composition of capital and the profile of investors<\/strong>. \u201cAlthough the international component of invested capital reaches and exceeds 60% of the total volume (more than 500 million euros), the Italian landscape still shows a<strong> shortage of specialized investors <\/strong>who, in foreign markets or other asset classes, have been able to drive and guide the market\u2019s consolidation and maturation process,\u201d comments Zirnstein.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Investor Strategies in Student Housing<\/h3>\n\n\n\n<p>On the operational side, meanwhile, <strong>strategies are taking shape<\/strong>. \u201cIn the short to medium term, investors will continue to diversify their real estate portfolios by combining BtS, BtR (with co-living components), and student housing, with \u2018investment plans\u2019 of less than \u20ac100 million and more than \u20ac200 million, respectively,\u201d explains the CEO of Scenari Immobiliari.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Student Housing Returns by City<\/h3>\n\n\n\n<p>Supporting this interest is also the<strong>return profile.<\/strong> \u201cStudent housing and co-housing show a <strong>stabilization of returns between 4.75% and 7.25%<\/strong> in cities such as<strong> Bologna, Padua, Rome, and Turin<\/strong>, <strong>between 3.75% and 5.75% in Florence<\/strong>, and <strong>between 3.25% and 4.75% in Milan<\/strong>,\u201d says Zirnstein \u2013 \u201cBy comparison, <strong>ordinary residential properties yield between 2.5% and 5.25%<\/strong>.\u201d<\/p>\n\n\n\n<p>From a global investor\u2019s perspective, the picture is even clearer. \u201cThe appeal stems from the <strong>stability of cash flows<\/strong> and the structural growth in demand,\u201d notes Ravara. \u201cInternational mobility and limited supply generate very high occupancy rates and resilient cash flows, key elements for long-term investments.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rents and profitability: the managed product premium<\/h3>\n\n\n\n<p>Significant differences also emerge regarding rents: \u201cPrivate, professionally managed residences command a <strong>15% rent premium<\/strong>, compared to 6% for university residences managed by universities,\u201d continues Hines\u2019 senior managing director.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>New development models and prospects for living in Italy<\/strong><\/h2>\n\n\n\n<p>Growth also depends on new development models.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Real estate conversions and redevelopment<\/h3>\n\n\n\n<p>\u201c<strong>Conversions from other uses<\/strong> account for <strong>about 30%<\/strong> of total volumes, confirming the market\u2019s ability to enhance existing assets through repositioning strategies,\u201d emphasizes Radice Fossati.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Milan-Cortina 2026 model<\/h3>\n\n\n\n<p>An approach applied across various projects. The <a href=\"https:\/\/www.we-wealth.com\/news\/milano-cortina-2026-arte-e-giochi-olimpici-un-legame-antico\"><strong><u>Milan-Cortina 2026 Olympic Village<\/u><\/strong><\/a> \u201crepresents an example of a public-private partnership capable of generating long-term value and a replicable model. It combines construction quality, innovation, and social impact, becoming a benchmark for institutional investors focused on residential real estate,\u201d explains <strong>Luca Mangia, general manager of Coima Rem<\/strong> \u2013 The new campus will account for 6% of the total demand (in Milan, ed.), with 1,700 beds and rent levels designed to be competitive and socially sustainable: rates will be subsidized, inclusive of all services, and 25% lower than the market average. \u201cThis is an element that sets the project apart from traditional private student housing and reinforces its role in serving the academic community.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Outlook for the Student Housing Market<\/h3>\n\n\n\n<p>Looking ahead, the <strong>direction is clear but not without obstacles<\/strong>. And the gap will remain. \u201cHigh construction costs, difficulties in obtaining building permits, regulatory risk, and social and cultural factors continue to slow development,\u201d notes Zirnstein, who nevertheless anticipates a gradual consolidation of investment volumes, thanks to the stabilization of monetary policies and the launch of new real estate products.<\/p>\n\n\n\n<p>Ravara shares a similar view, concluding: \u201cItaly is still in a development phase, with demand exceeding supply in major university cities. This makes the <strong>market particularly attractive for investors with a medium- to long-term vision<\/strong>.\u201d<\/p>\n\n\n\n<p><strong><em><strong>(Article excerpted from issue no. 89 of We Wealth magazine, April 2026)<\/strong><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yields ranging from 4% to over 7%, structural demand, and a significant supply gap: student housing is driving growth in the residential sector in Italy, which still lags behind the rest of Europe but is becoming increasingly attractive to investors<\/p>\n","protected":false},"author":85135,"featured_media":143707,"template":"","categories":[2256,2269],"tags":[],"collana-video":[],"class_list":["post-143706","news","type-news","status-publish","has-post-thumbnail","hentry","category-real-estate-2","category-real-estate-3"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Student housing 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