Summary

As of 2020, France's student residence market has experienced significant growth with the global student residences market valued at US$11 billion and expected to hit $18.717 billion by 2032 at a CAGR of 4.95%. In France, the market is thriving, with around 342,000 student housing units available by 2023, including 175,000 managed by CROUS. France remains the world's sixth-largest host country for international students. Despite a slight decline in national student numbers, the country saw an 8% growth in international student enrolment from 2021 to 2022, reaching over 400,000. This growing demand is challenged by high construction costs, as indicated by the 2023 real estate crisis that affected players such as Réside Études. The Climate and Resilience Act, targeting "energy passoires," further pressures property development, aiming for carbon neutrality by 2050. With a market led by operators like Résides Études, Nexity, and Action-Logement, there is governmental support, exemplified by plans to add 35,000 CROUS-managed units by 2027, aiming to meet the increasing accommodation demand exacerbated by factors like burgeoning international student numbers, which France is strategizing to boost to 500,000 by 2027..**Trends and Dynamics in the Student Residence Market** The student housing market in the concerned country, particularly in France, is marked by robust demand, which has been consistently rising alongside the increasing number of students. As we delve into the latest trends and main characteristics of this sector, it is essential to note that there are approximately between 2 and 3 million students enrolled in higher education. This considerable student population serves as a foundational pillar for the demand in student residences. Among these students, there's a substantial portion of foreign students, with the numbers reaching between 350,000 and 450,000, driven by the country's attractiveness and supportive government measures aimed at increasing international student mobility. It's noteworthy that France's student market is not only about the numbers but also about disparities and preferences. For instance, while a large number of students prefer to live in more spacious accommodations such as T2 apartments, affordability issues push many to opt for smaller spaces like studios or shared rooms. Furthermore, the market exhibits a marked regional imbalance, with metropolises like Paris and Lyon experiencing intense demand pressures, which does not necessarily correlate with the places where rents are the highest. Despite this, the average accommodation budget in regions like the Paris area is noticeably higher than the rest of the country. To underscore the market dynamics, it's important to highlight the tension between demand and supply. There exists a shortage of student housing, estimated to be around a quarter of a million units, demanding urgent action to increase the availability. Moreover, this shortage is exacerbated by regulatory constraints such as the prohibition of renting properties with poor insulation, dubbed "energy passoires," a measure aimed at enhancing the eco-efficiency of the housing stock. The market structure depicts a well-defined ecosystem involving various players from property developers to residence managers. The private commercial sector, housing giants such as Résides Études and Nexity, holds significant sway. In contrast, CROUS and other social landlords represent the public sphere of the supply chain, offering more accessible housing options. Despite the challenges, the market's valuation is substantial and growing, with estimations of reaching beyond a billion euros in the coming years. This valuation is fueled by factors such as strong occupancy rates, which remain around 90%, and a student residence market projected to expand steadily. Amidst these conditions, the student housing market in the concerned country, typified by France's example, functions under enduring pressures from burgeoning demand, regional imbalances, and tightening regulatory standards. It's a sector with considerable potential for growth.### Key Actors in the French Student Residence Market In the landscape of France's student accommodation market, a variety of players come together to create, manage, and operate the housing solutions that cater to the country's vibrant student population. These entities range from public organizations to private-sector companies, each playing a critical role in shaping the market to meet the ever-evolving demands of student living. **CROUS (Centre Régional des Œuvres Universitaires et Scolaires)**: As a public entity, CROUS occupies a pivotal place within France's student residence ecosystem. Tasked with managing the public university residences under the Ministry of Higher Education, CROUS offers accommodations that are affordable and tailored to fit the socio-economic profiles of their student residents. While they don't operate as a market force in the traditional sense, their substantial share of the housing stock makes them indispensable for understanding the supply-demand dynamics in French student housing. **Réside Études**: As a trailblazer in the private sector, Réside Études exemplifies a profitable, purpose-driven business model. Offering a host of student accommodations under its bail, Réside Études focuses on providing a blend of comfort and convenience with its fully serviced residences, catering to a clientele that demands modern amenities and a hassle-free lifestyle. **Nexity**: Another strong contender in the private sector, Nexity has made a name for itself with its Studéa brand, dedicated specifically to offering premium student living spaces. Nexity's approach is one that marries the reliability of a seasoned real estate giant with a nuanced understanding of students' needs, creating spaces that are not just places to stay but environments conducive to both living and learning. **Sergic**: Known for its Twenty Campus brand, Sergic is a notable private commercial player that has keyed into the student residence market with a clear vision. By delivering modern, sophisticated, and well-serviced accommodations, Sergic's portfolio is tailored to meet the expectations of today's students, who seek more than just a roof over their heads. **Groupe Cardinal with Cardinal Campus**: This company is a multifaceted real estate player that has extended its reach into the domain of student housing through its Cardinal Campus brand. Offering trendy, functional, and comfortable living spaces, the Groupe Cardinal brings a level of architectural finesse to student housing, rendering structures that are as much a delight to the eyes as they are to live in. **Action Logement**: Operating on the non-profit side of the
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  • Last update : 24/04/2024
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Summary and extracts

1 Market overview

1.1 Market definition and presentation

Student residences, developed on a massive scale in the 2000s, are large housing complexes specially designed to meet the needs of students and, in some cases, young professionals. These residences are often located close to educational establishments and offer a range of services to facilitate daily life, such as housekeeping, laundry, Internet access and sometimes administrative assistance. They are fully furnished and equipped for the immediate comfort of their residents.

There are two main types of residence: private student residences and public university residences. The latter, managed by the Crous or social landlords under the aegis of the Ministry of Higher Education, are not necessarily considered a market in the strict sense of the term. Nevertheless, they are included in the scope of this study, as they represent 50% of the student housing stock in France, and are essential to understanding the supply/demand dynamic, which is a key driver of the student residence market. Applicants for this type of accommodation are selected on social criteria such as parental income and scholarship status. Despite the high demand, places are very limited and require a Dossier Social Étudiant (DES).

In France, in 2023, there will be around 34,2000 student accommodation units, of which 175,000 will be managed by the Crous. Hostels, which are often run by associations and sometimes have a religious connotation, and which are mainly intended for young working people such as interns or apprentices, are not included in this study, as they are in a very small minority and provide little information.

The market is characterized by very strong, ever-increasing demand, and certain metropolises are particularly under pressure, with increasing international mobility among students. The recent real estate crisis has also had an impact on this market, which is suffering from a flight of investors and rising development costs for real estate projects.

1.2 Ever-increasing global demand

In ****, the global student residences market was valued at US$** billion. With a compound annual growth rate of *.**% forecast from **** to ****, it is projected to reach $**.*** billion by ****. This market is characterized by continuous demand and a steady flow of tenants, even during the summer months, reflecting the stable use of ...

1.3 A booming national market

at the start of the **** academic year, there will be **,**** student residences in France, including ***,*** managed by the Crous. The remainder would be spread across *,*** residences. These residences are either managed by private commercial players (***) between **** and ****, an expansion mainly attributable to key players such as Cardinal Campus, Fac-Habitat and The ...

2 Demand analysis

2.1 Students in France

For the ****-**** academic year, France counted *.** million students enrolled in higher education courses, all courses combined, a number that doubled between **** and ****. This growth was particularly strong in ****, due to French demographics, and in ****, following the previous year's exceptional success rate at the baccalauréat. However, since the start of ...

2.2 Increasing student mobility

According to Unesco, in ****, France will be the *ᵉ most popular country in the world for mobile students, behind the Anglo-Saxon countries that offer training in English. The European Union is the top destination for the *.* million internationally mobile students, and in ****, France welcomed over ***,*** foreign students to its educational institutions, *% more ...

2.3 Student housing preferences

In terms of accommodation, students unsurprisingly prefer to live in a large apartment such as a T*. Some, however, prefer to live in a shared room or apartment. obviously, this survey does not represent the reality of student housing solutions. Half of all students say they prefer furnished accommodation.

What type ...

2.4 Housing difficulties in France

Students report different housing-related problems, depending on the type of accommodation they live in. Students living in CROUS rooms, for example, are more likely to have major housing problems than those living with their parents or in the property of family or friends. The problems encountered vary: students in rented accommodation, ...

3 Market structure

3.1 Value chain

3.2 The different types of player

A student residence project is developed under the management of a property developer, who first purchases the land and then oversees the development of the project through to the start of operations. During the construction phase, design offices or construction companies are commissioned by the developer to get the building off ...

3.3 Market features and recent regulations

The real estate sector has been very much in flux in recent years, and although the student residence market remains fairly stable, the dynamics are changing and investors are becoming increasingly scarce.

The Climate and Resilience Act, enacted in France on August **, ****, represents an ambitious effort to achieve carbon neutrality by ...

4 Offer analysis

4.1 Precise description of the offer

Student residences often group together several types of accommodation in the same building, and offer a range of services, either included in the rent or extra.

The types of apartments offered are often :

Rooms, with shared kitchen and sometimes shared bathroom Studio apartments, with private kitchen and bathroom, between * m² and ...

4.2 Some examples of rents

4.3 The latest innovations in the sector

A number of trends are emerging around the development of student residences.

Office-to-residential renovation

To meet government targets for the creation of student accommodation, the renovation of offices into residences is a widely adopted solution in France, as it is a simple and cost-effective way of rapidly obtaining more housing. This ...

5 Regulations

5.1 The 2004 LMNP law

France's LMNP (***) and furnishings, which can result in a clear reduction in taxable income.

This status also allows, under certain conditions, exemption from capital gains tax on the resale of the property if annual revenues do not exceed certain thresholds (***). As far as social security contributions are concerned, LMNPs are exempt ...

5.2 Climate and Resilience Act

The Climate and Resilience Act, enacted on August **, ****, is a major legislative effort by France to combat climate disruption and strengthen resilience to its effects. It manifests itself through various measures applied to diverse sectors such as transport, advertising, energy, and housing in particular. The main objective is to achieve carbon ...

6 Positioning the players

6.1 Player segmentation

M-habitat ; Studyrama ; Pappers

  • Les Crous
  • Nexity
  • Résidence Etude Les Estudiantines
  • Immojeune
  • Studélites
  • Arpej
  • Campusea (Gecina)
  • Fac-Habitat
  • Espacil
  • Suitétudes
  • Capétudes
  • Kley groupe
  • Cap'Études
  • CIUP Cité internationale universitaire de Paris
  • Fac Habitat
  • NEMEA Appart'Etud (Nemea groupe)
  • Cardinal Groupe
  • Youfirst

List of charts

  • Student numbers in France
  • Breakdown of French students by type of establishment
  • Cities with the highest student housing demand
  • Average studio rents in France's most expensive cities
  • Average monthly rent by housing type
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Latest news

Real estate: Nexity's property managers become independent - 04/04/2024
  • - Sale of Nexity's services division to Bridgepoint: 440 million euros.
  • - Business areas included in the transaction: condominium management (60% of customers), rental management, transaction and insurance brokerage.
  • - Size of business sold: nearly 3,200 employees, over 200 branches, nearly one million customers.
  • - New company name after sale: Evoriel.
  • - Brands retained: Lamy, Oralia, Richardière, Lamy Assurances.
Real estate crisis: Nexity launches redundancy plan and freezes dividends - 29/02/2024
  • - Nexity, the French real estate market leader, has announced a redundancy plan.
  • - Nexity sales in 2023: 4.27 billion euros, down 9%
  • - Nexity has seen a 25% reduction in new-build reservations compared with the average for the last five years.
  • - Nexity currently has around 8,200 employees. Of these, around 3,100 are due to leave the Group in April, following the planned sale of the property administration business to Bridgepoint.
  • - Nexity's international sales are down.
  • Subsidiaries in Portugal and Poland have already been sold, and the company plans to leave Belgium, sell its platform in Italy and complete its projects in Germany.
Real estate: Nexity accelerates debt reduction by selling off its property management business - 22/12/2023
  • Value of Nexity assets sold to Bridgepoint: 440 million euros.
  • Nexity sales in 2022: 4.7 billion euros.
  • Number of lots managed by Nexity's property managers: over 800,000.
Real estate: Nexity ready to sell its services division - 03/10/2023
  • Nexity's services division accounts for around 20% of the Group's sales, or 938 million euros in 2022, up 10% on 2021.
  • Nexity manages 20 million square meters on behalf of major institutional players.
  • Nexity manages 840,000 lots as a condominium syndic or building manager.
  • Nexity generates around 25,000 rentals a year and between 5,000 and 6,000 transactions in existing properties.
  • New housing sales have fallen by almost 40%.
  • Nexity and Carrefour signed an agreement in early June to develop mixed-use projects combining housing, retail and office space on Carrefour's vast real estate portfolio
Nemea welcomes a new shareholder to boost growth - 09/02/2023
  • Groupe Nemea welcomes a new shareholder.
  • Recomposition of capital: 67% for founding chairman Pascal Recorbet.
  • Historic" partners: Grand Sud-Ouest Capital, BNP Paribas Développement, Crédit Agricole Aquitaine Expansion, Arkéa Capital.
  • New investor: Ouest Croissance from the Banque Populaire group.
Kley groupe: Courbevoie to welcome a new coliving residence in 2026 - 21/01/2023
  • 478 beds, 12,700 m² of interior common areas
  • Rent including sports and cooking classes, job dating and evening events
  • Scheduled to open in 2026

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Les Crous
Nexity
Résidence Etude Les Estudiantines
Immojeune
Studélites
Arpej
Campusea (Gecina)
Fac-Habitat
Espacil
Suitétudes
Capétudes
Kley groupe

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