Even in a pandemic, there are more places in dormitories

Ten post dostępny jest także w języku: polski

Despite the pandemic, 2.3 thousand places in private dormitories have been added in 2020. In total, there are currently 80.3 thousand places in student residences at public and private universities. Taking into account that 1.2 million students study in Poland, only one in 10 of them may count on accommodation in a student dormitory – according to CBRE’s analysis. The company’s experts point out that at present, due to the pandemic, a lot of student halls of residence are empty, but the demand for them will grow in the coming years. Hence, new development projects are still planned in this area.

– The largest academic centres in Poland are Warsaw, Krakow, Wrocław, Poznań, Tricity, Łódź, Lublin and Katowice. As many as 68% of all students study there. However, there are 165 universities outside these cities, and every third young person studies there. It turns out, however, that despite 1.2 million students, our country’s sixth place in the European Union in terms of the number of students and the high percentage of young people who take up higher education, Poland offers few places in student halls of residence.  This results in students either staying in family homes or renting flats. However, looking at the activity of developers in this market, we can see changes coming. In the coming years, more students will be able to count on places in student residences – says Marcin Jański, head of the alternative investments department at CBRE.

Dormitories are on the rise, but there are still not enough of them

The latest Eurostat data summarising 2018 shows that as many as 46.3% of Polish 20-year-olds are studying. This figure is clearly above the European Union average of 41.9%. The continuing high popularity of studying in Poland translates into growing activity of developers in the student accommodation sector.

CBRE’s analysis shows that at the beginning of 2021 there were 62 private dormitories operating in the largest academic markets, with a total of 10,600 places. This is 28% more places than a year earlier. At the same time, student residences owned by public universities had 69.6 thousand places for students (no change year-on-year). In total, places in private and public academies provide accommodation for 9.9% of students. Their occupancy rates remain very high. It is true that many public university dormitories are currently empty, but it is worth noting that at the beginning of 2021, of the 62 private dormitories operating in the eight largest markets, 18 had no vacancies at all, and in another 6 there were no more than a few vacancies. Only in one case was the rent suspended for the duration of the restrictions.

Ambitious plans of investors and developers

Last year saw no slowdown in investment plans for the construction of private student residences. 2.3 thousand new places were created in 10 facilities. Currently, 7 dormitory projects are under construction and 39 are at various stages of planning.

– According to the announcements, in the next few years even approx. 15,000 new places in private student residences, more than are currently available in all of the existing facilities. However, based on current construction sites and projects at an advanced planning stage, the real supply over the next 2-3 years will probably be no more than 3,500 to 5,000 places,” concludes Marcin Jański.

Source: CBRE