Investment in the UK purpose-built student accommodation (PBSA) sector has soared to an unprecedented £3.5 billion in 2024, according to new data from Savills—representing a 13% increase on last year’s total.
This strong performance builds on a five-year average of £4.9 billion per annum, underscoring PBSA’s continued resilience despite headwinds such as rising capital costs, visa delays and cautious fundraising conditions.
Savills says the outlook for 2025 is promising, with stronger investor sentiment potentially pushing liquidity volumes even higher. A spokesperson for Savills Operational Capital Markets noted:
“Despite a challenging year, the PBSA market remains resilient and a crucial part of the operational living investment landscape. 2025 promises to be exciting, with sizeable portfolio transactions, increased development funding and more joint ventures on the horizon.”
Deals highlight robust demand
Major portfolio sales
One Medlock in Manchester (1,014 beds) sold by Dominus to Greystar.
The Triangle in Selly Oak (836 beds) sold by Apsley Capital and Galliard to Greystar.
Central London sites
Unite’s purchase of the 444-bed Kings Place.
iQ/Blackstone’s acquisition of the Blackfriars Crown Court scheme.
London continues to demonstrate strong appetite for PBSA development, supported by sustained student demand.
Activity beyond London
Savills advised Corebridge on the sale of Bournemouth and Cardiff assets to Generation, backed by new capital partner Goldman Sachs.
While forward funding activity was more limited in 2024, Savills oversaw Hines’ purchase of Bristol’s Gas Lane scheme from Watkin Jones. Emerging trends include joint ventures and preferred equity deals, such as the collaboration between Housing Growth Partnership and Watkin Jones at Grove Crescent in Stratford.
Operational PBSA assets on the market were constrained, but investor interest remained robust—illustrated by the response to Savills’ Project Sandpiper (Curlew). Many within the sector are anticipating strong liquidity flows in 2025, as PBSA remains an attractive segment within the operational living space.
