Ireland Student Housing Shortage Creates Investor Opportunities

Ireland’s economic and demographic characteristics make student housing an attractive opportunity for real estate investors. However, there is now a significant gap between the supply of purpose-built student accommodation (PBSA) and the demand for it, especially in Ireland’s four major higher education cities, which include Dublin, Cork, Galway, and Limerick. 

The country’s sustained investment in education and research and development, as well as its EU eurozone membership, have positioned it as a prime destination for international investments in various high-value sectors. 

The Ireland housing news highlights the country’s demographic data representing a notable increase in the 14 to 19 year-old age group between 2016 and 2022, indicating a rising demand for tertiary education in the coming years. Ireland witnessed a surge of 23% in its full-time undergraduate and postgraduate student population over the past decade. It is suggested that by 2030-2031, there will be between 39,500 and 48,900 additional full-time students in higher education compared to 2021-2022, with a likelihood of these estimates being conservative given just above 10% growth in the 15 to 19 age group since 2016.

According to Joan Henry, Chief Economist and Head of Research at Knight Frank Ireland, which is a leading commercial and residential property agency based in Dublin, investors will increasingly target PBSA investment given the supply and demand dynamics in the market. Although there may be some reshuffling within existing portfolios due to limited new supply, the primary focus of investment activity in the next year will center on acquiring new sites and initiating planning applications.

As per the Ireland housing news, the Ireland student housing sector has seen limited investment despite strong investor interest. Only €688 million was allocated towards Ireland student housing over the past five years. However, there may be a significant rise in investments in the sector over the next five years. 

The Ireland housing shortage is exacerbated by a scarcity of ongoing construction or planned projects in the short to medium term, driven by construction cost challenges that mirror wider trends in the real estate market. It is vital to address this Ireland housing shortage, especially at a time when all housing categories are facing undersupply challenges. Accelerating the delivery of new Ireland student housing is essential to ensure that Ireland remains an attractive destination for both international and domestic students. This, in turn, will uphold its position as a global leader in education and a hub for high-value sectors and job creation.