PBSA Market Size, Share, Analysis, Trends, Growth Report 2030

PBSA Industry Prospective:

The global PBSA market size was evaluated at $9.1 billion in 2022 and is slated to hit $14.1 billion by the end of 2030 with a CAGR of nearly 10.9% between 2023 and 2030.

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The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace. The PBSA market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the PBSA industry report explores the investor and stakeholder space to help companies make data-driven decisions.

PBSA Market: Overview

Purpose-built student accommodation which is a long form of PBSA is a kind of housing facility constructed for university students. These real estate properties are in two forms, namely, cluster flats having private kitchens but shared living spaces and another one is modern residence halls comprising bedrooms with dining facilities, shared kitchens, and living units. With the rise in the student population across the globe, the demand for PBSA is predicted to increase by leaps and bounds in the upcoming years.

Key Insights

• As per the analysis shared by our research analyst, the global PBSA market is projected to expand annually at the annual growth rate of around 10.9% over the forecast timespan (2023-2030)
• In terms of revenue, the global PBSA market size was evaluated at nearly $9.1 billion in 2022 and is expected to reach $14.1 billion by 2030.
• The global PBSA market is anticipated to record massive growth over the forecast period owing to the universities providing their own student accommodation, and these educational institutes are finding it difficult to fulfill the escalating demand for accommodation.
• In terms of accommodation type, the private student accommodation segment is slated to register the fastest CAGR over the forecast period.
• On the basis of rent type, the basic segment is slated to dominate the segmental surge over the forecast period.
• Region-wise, the North American PBSA market is projected to register the highest CAGR during the assessment period.

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PBSA Market: Growth Factors

Escalating issues faced by students in accommodating other countries to boost the global market trends

The growing need for accommodation for housing students on or off-campus will steer the expansion of the global PBSA market trends. Reportedly, universities are providing their own student accommodation, and these educational institutes are finding it difficult to fulfill the escalating demand for accommodation. This has prompted the demand for PBSA as these educational institutions are preferring private players in the lodging and accommodation sector. For the record, the PBSA market in the UK registered investments worth nearly £7.3 billion which is higher than £4.2 billion in the past five years. Moreover, there was a nearly 6.1% average rental increment in 2021-2022.

Prospects of huge returns are likely to boost investments in the PBSA market, thereby steering global market growth. With rise in the taxation and strict legislation, the supply of households in the multiple occupation for subjects is reducing, thereby steering the demand for purpose-built student accommodation business. All such aspects will embellish the expansion of the global market.  In the first quarter of 2022, The Unite Group Plc, a developer & operator of student accommodation in the UK, sold a PBSA portfolio of nearly 11 student accommodation properties having nearly 4,500 beds at costs of over £306 million to a division of Loan Star Funds.

PBSA Market: Restraints

A surge in the need for huge capital investments to decimate the global industry surge

A rise in the number of new entrants such as overseas investors and discounts provided by the weak currency can put brakes on the global PBSA industry. Competitive tension created in the investment market due to the presence of unwilling sellers can generate hindrances in the path of the growth of the global industry. Surging operational costs can further inhibit global industry trends.

PBSA Market: Opportunities

Huge profits accrued from investments in PBSA to open new growth opportunities for the global market

The rise in the overall returns on investments along with strong rental growth is anticipated to open new growth avenues for the PBSA market across the globe. In the first half of 2023, Sunway RE Capital Private Limited, a key player in the real estate investment & fund management sector, enhanced its purpose-built student accommodation line by acquiring Freehold purpose-built student accommodation (PBSA) in the UK. The move is likely to open new horizons of growth for the global market. Conversion of office to student accommodation will further shape the growth of the market globally.

PBSA Market: Challenges

Differentiation in the immigration & visa laws for immigrating students in different countries can be a huge challenge for the industry surge globally

Strict government laws pertaining to accommodation in various countries can prove to be bigger for the expansion of the global PBSA industry. Different visa and immigration laws for students in various countries can prove to be a major challenge in the growth path of the industry across the globe. For instance, In May 2023, the strict UK immigration laws can result in Indian students preferring the U.S. and France as the destination for higher education.

Furthermore, a surge in construction costs and a rise in the prices of planning systems can prove to be a major challenge for the PBSA industry across the globe.

PBSA Market: Segmentation

The global PBSA market is sectored accommodation type, location, rent type, and region.    

In accommodation-type terms, the global PBSA market is segregated into halls of residence, private student accommodation, and rented rooms or house segments. In addition to this, the private student accommodation segment, which accrued more than 50% of the global market share in 2022, is slated to record the highest CAGR in the forecasting timeline. The segmental growth in the forecasting years can be subject to an increase in the number of students resulting in a rise in the private student accommodation hostels and guest houses. Moreover, universities are finding it difficult to make arrangements for student accommodation on their premises, thereby translating into humongous preference among students for private student accommodation.  

On the basis of rent type, the PBSA industry across the globe is sectored into basic rent and total rent segments. Furthermore, the basic rent segment, which accrued a major share of the global industry in 2022, is slated to lead the segmental expansion in the ensuing years. The segmental growth in the forecasting timeframe can be due to an increase in the trend among the hostel & guest house owners for basic rent.

Based on the location, the PBSA market globally is sectored into the city center and periphery segments.

PBSA Market: Report Scope

PBSA Market: Regional Insights

European PBSA market to establish a dominant position over the forecast timeframe

Europe, which amassed more than 33% of the global PBSA market revenue in 2022, is anticipated to record a notable expansion over the projected timeline. The market expansion in Europe in 2023-2030 can be due to a growing preference for the UK as an educational destination among Asian students due to the high quality of education imparted in the universities in the UK. Reportedly, in 2021-2022, the UK spent nearly £101 billion on educational activities, thereby making a strong position for the UK in the global education market and an attractive educational destination for overseas students in the country. The move will help in expanding the scope of the regional market surge over the years ahead.

Furthermore, the PBSA industry in North America is anticipated to register the fastest CAGR in the assessment timespan. The factors that are likely to influence the growth of the regional industry include favorable legislation pertaining to student study visas as well as green card and permanent residence laws in the countries such as the U.S. and Canada.

PBSA Market: Competitive Space

The PBSA market profiles key players such as:

• CRM students
• Placio
• Youthville Serviced Hostels
• Uni Acco
• Stanza Living
• Amber Student
• Unite Group
• University Living.

The global PBSA market is segmented as follows:

By Accommodation Type            

• Halls of Residence
• Private Student Accommodation
• Rented Rooms or Houses

By Location

• City Center
• Periphery

By Rent Type

• Basic Rent
• Total Rent

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa