The French student housing sector will be an increasingly attractive niche market for real estate investors due to undersupply, rising student numbers and the need for better management standards, according to new research by Savills. Guaranteed rent is a further incentive for investors, with rents ranging from EUR 122 per month for a room in standard public sector housing to EUR 800 per month for a room in a principal university centre. Savills identified yields between 5.5% and 7% in the sector. Current capacity is estimated at housing only 10% of the student population, with capacity in the Ile-de-France region around Paris dropping as low as 5%.
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