Asian investors turn their focus to university towns

An increasing number of investors are turning their attention to an asset class that combines stable cash flows, strong demographic fundamentals, and constrained supply: purpose-built student accommodation.

A notable example is Far East Orchard (FEOR), the Singapore-listed property group, which is taking another major step in expanding its presence in the United Kingdom. The company is currently in negotiations to acquire and develop a purpose-built student accommodation (PBSA) project in London with an estimated total value of approximately €235 million. The development involves a site being acquired from Unite Students, the UK’s largest student accommodation provider, and is expected to be financed through a dedicated investment vehicle established by FEOR in partnership with private investors.

The transaction forms part of the company’s FEOR30 strategy, under which it aims to significantly expand its footprint in both the hospitality and student housing sectors. In practice, Far East Orchard is not simply investing in individual assets. It is building an integrated platform for the development and management of student accommodation with a pan-European reach.

This strategy began in 2015, when the company made its first investment in the UK’s PBSA market. Since then, it has established a dedicated development fund, raised more than €80 million in capital, and steadily strengthened its position in the sector. The defining milestone came with the acquisition of Homes for Students, the largest independent student accommodation management company in the United Kingdom. FEOR now owns 84% of the business, giving it access to a portfolio of more than 55,000 student beds across dozens of British university cities.

This strategy reflects a broader shift in the way institutional investors evaluate real estate. Student accommodation is no longer regarded as a niche segment of the residential market. Instead, it has evolved into a distinct institutional asset class, characterized by specialized management, scalable operating platforms, and attractive long-term investment fundamentals.

The sector’s appeal is underpinned by growing international student mobility, the persistent shortage of modern student housing in major university cities, and the ability to generate resilient income streams even during periods of economic uncertainty. Unlike office assets, which continue to face pressure from hybrid working patterns, or retail properties challenged by the growth of e-commerce, demand for high-quality student accommodation remains robust.

London sits at the center of this investment trend. Despite recent pressures on the international student market, the supply of purpose-built accommodation continues to fall well short of demand. This imbalance explains why investors from Singapore, the Middle East, Canada, and the United States continue to allocate billions of euros to the sector.

Greece has yet to emerge as a destination for the world’s leading student housing operators. However, the introduction of non-state universities, efforts to attract international students, and the severe shortage of professionally managed student residences are creating the foundations of a market that remains at an early stage of development. Much as logistics did two decades ago—and data centers more recently—student housing is evolving from a specialized real estate product into a fully institutional investment sector. When major Asian investors begin building platforms comprising tens of thousands of student beds, the discussion is no longer about a single development in London. It is about the next global growth cycle in real estate.