According to the Bonard Student Housing Annual Report, international student enrolments across Europe and the United Kingdom increased by approximately 4% in 2025, underscoring the sustained and structural demand for high-quality student accommodation. This growth is not confined to established university hubs but increasingly extends to secondary cities with expanding academic clusters, intensifying pressure on local residential rental markets.
Despite elevated levels of investment and construction activity, the sector remains materially undersupplied. Bonard highlights that in major urban markets across Europe, Canada, and Australia, there is, on average, only one purpose-built student housing bed for every five students—clearly illustrating the magnitude of the supply deficit. In 2025, total student housing stock expanded by just 2%, while projects currently in the development pipeline are expected to address less than 5% of the overall shortfall.
This structural imbalance continues to drive exceptionally high occupancy levels. Across Europe, average occupancy rates stand at approximately 96%, despite mounting affordability pressures. At the same time, rental growth continues to outpace inflation. In 2025, average rents increased by 3.9%, compared with inflation of 2%, reinforcing the sector’s ability to deliver inflation-protected income and preserve real value over the long term.
Investment Momentum and Strategic Shift Toward Europe
Student housing has climbed from 15th to 3rd place among the most attractive global real estate investment sectors, according to industry professionals, ranking behind only data centers and energy infrastructure. Transaction volumes increased by more than 76% year-on-year, reaching their highest level in the past three years. Concurrently, investor focus is gradually shifting away from mature markets—most notably the United Kingdom—toward continental Europe, creating a new cycle of opportunities, including for the Greek market.
Greece as an Emerging Growth Market
Within this broader European context of pronounced undersupply and accelerating demand, Greece is increasingly positioned as a market with compelling growth prospects. A sizeable student population, a limited stock of purpose-built student accommodation, and escalating pressure on the private rental sector create market conditions comparable to those observed in other European countries during the early phases of sector maturation.
Beyond these fundamental dynamics, Greece is now witnessing the rollout of concrete public and private initiatives that are expected to materially reshape the student housing landscape over the coming years.
One of the most significant developments is the University of Crete Student Accommodation PPP, delivered through a public-private partnership structure. The project предусматриes the development of approximately 2,833 rooms, providing up to 4,846 beds across Heraklion and Rethymno, addressing one of the most acute housing shortages in Crete while also incorporating new academic facilities.
In parallel, the Western Macedonia Student Dormitories Project is being advanced through a PPP framework and involves the delivery of 750 new student beds across Kozani, Florina, Kastoria, and Ptolemaida. The project is expected to commence in summer 2026 and represents the first large-scale, purpose-built student housing initiative in Northern Greece.
Private Capital and Urban-Focused Developments
Alongside public initiatives, private capital is increasingly active in the Greek student housing sector. A prominent example is the Ellinikon development, where Lamda Development, in collaboration with UNIC Athens, is planning a modern student accommodation complex comprising approximately 1,000 rooms, further reinforcing Athens’ position as a regional education and investment hub.
Premia Properties has also emerged as a key market participant and one of the most active investors in the sector. The company has already secured more than 500 student housing rooms and is expected to exceed 1,000 beds by the end of 2026 through a combination of acquisitions and new developments. Over the medium term, Premia aims to deliver approximately 2,000 rooms within the next three to five years, materially increasing supply in the Greek market.
Projects currently under development or planning include a new student residence in Kaisariani (Athens), involving the acquisition and conversion of a building on Adrianoupoleos Street into approximately 151 rooms, with operations expected to commence after summer 2026 and additional communal areas at ground level. In Volos, a mixed-phase development comprising 50 residential units and a subsequent phase of 80 beds in the “Tachydromos” area forms part of a broader urban regeneration initiative. Smaller-scale developments of approximately 35 rooms are planned in Rethymno and Rhodes, while similar projects are being advanced in Xanthi and Larissa. Finally, in Patras, approximately 140 new student housing beds are planned, with agreements expected to be finalized during 2025–2026.