UK PBSA investment hits record-breaking £3.5bn, says Savills

Investment in the UK Purpose Built Student Accommodation (PBSA) sector soared to £3.5 billion in 2024, according to new figures from Savills – a notable 13% uplift on 2023.

This robust performance adds to the sector’s five-year average of £4.9 billion per annum, illustrating the resilience of PBSA despite ongoing market hurdles such as rising capital costs, visa delays and challenging fundraising conditions.

Savills anticipates that strengthening investor sentiment in 2025 could help push liquidity volumes even higher. A spokesperson for Savills Operational Capital Markets observes:

“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 continuing demand

Major portfolio sales

  • One Medlock in Manchester (1,014 beds) was sold by Dominus to Greystar.
  • The Triangle in Selly Oak (836 beds) was acquired by Greystar from Apsley Capital and Galliard.

Central london sites

  • Unite’s purchase of the 444-bed Kings Place.
  • iQ/Blackstone’s acquisition of the Blackfriars Crown Court scheme.

London’s robust student demand and the market’s appetite for PBSA development underpinned these transactions.

Outside the capital, Savills advised Corebridge on the sale of Bournemouth and Cardiff assets to Generation, supported by new capital partner Goldman Sachs.

Shifting deal structures

Forward funding was more limited in 2024, although Savills advised on Hines’ acquisition of Bristol’s Gas Lane scheme from Watkin Jones. Emerging trends include joint ventures and preferred equity structures, illustrated by Housing Growth Partnership and Watkin Jones’ collaboration at Grove Crescent in Stratford.

Meanwhile, the stock of operational PBSA assets for sale was constrained, but demand remained strong – exemplified by notable interest in Savills Project Sandpiper (Curlew).