The student residence market - France

The French student housing market has seen some growth, but at a slower pace than expected, with the available housing stock reaching 142,000 by 2020, marking a 6% increase. Market demand is fuelled by a growing student population of over 2.72 million, with a notable 32% increase in foreign students over the last decade. Despite the growing number of students, there is a housing shortage in the market, not least due to the uneven geographical distribution of accommodation. The average budget for student accommodation is €608/month, with significant regional disparities (€865/month in Paris). While the European student accommodation market has seen substantial growth in investment, reaching €8.8 billion by 2020, the COVID-19 pandemic has had a major impact on the sector, with many students opting to buy their own accommodation. the sector, with many students choosing to stay with their families as education moved online, leading to higher vacancy rates and lower rental prices.

Digitization and services such as concierge, laundry and unlimited internet access are becoming essential in student residences. Regulatory measures, such as rent control, continue to influence market structure. Major market players include groups such as Nexity Studéa and Les Estudines, with competition from public players such as CROUS, which provides around 175,000 rooms.

changes in demand for student accommodation in France

As France's university landscape continues to attract more and more students, both nationally and internationally, demand for student accommodation has continued to grow. The student population, which stood at between 2.5 and 3 million at the start of the 2019-2020 academic year, bears witness to this, marking a steady annual growth rate of around 1.5% to 2%. This growth reflects the rise in the number of graduates eligible for higher education, as well as theincrease in the foreign student population in France, which rose by over 30% in the decade leading up to 2020.

However, while the student population is increasing, growth in the student residence market has not kept pace. A significant proportion of these students - around 10-15% - opt for collective residences such as Crous, private residences or boarding schools. However, it is notable that younger students, particularly undergraduates, make greater use of these residences, generally for short periods of one to two years.

The geographical distribution of students reveals a concentration in the academies of Ile de France, as well as significant numbers in Lille, Lyon and Nantes, regions that have also seen dynamic growth. Surprisingly, Paris, despite having the highest number of students, does not reflect this situation with the highest number of student residences, due to economic factors that drive many students to live in outlying areas.

The financial implications of the student residence market reveal a considerable sector with a potential value of almost one billion euros, considering an average monthly rent of around 550 euros. What's more, foreign students - who account for almost 15% of the student population - represent a direct demand for these accommodations, due to the simplified application process they often require. From a regulatory standpoint, student residences have to comply with specific legal frameworks, which are similar to the general regulations governing property rentals, with special rules concerning the duration of rental contracts and the obligations of tenants. Tax incentives such as the Censi-Bouvard provision and the status of loueur meublé non professionnel offer advantages such as VAT recovery and depreciation allowances, suggesting an environment conducive to investment in student accommodation. The digitization of student residences is a growing trend, reflecting the preferences of the young population who rely heavily on technology for their daily activities.

The main competitors shaping the student accommodation market landscape in France

A number of leading players are competing fiercely to meet the ever-increasing demand from the student population. Each of these market players is carving out a unique position for itself by offering distinct services and housing solutions that are conducive to university life.

• Nexity Studéa leads the way with a significant market share of 23%. Founded in 1987, this developer and manager has proven its prowess in providing student housing solutions with an emphasis on location and convenience. By creating living spaces that meet the needs of today's students, Nexity Studéa has become a go-to name for students looking for reliable, comfortable accommodation.
• Les Estudines, the brand of the Réside Etudes group, is close behind with 18% market share. Since 1989, Les Estudines has forged a reputation as a developer and manager of tailor-made residences offering a mix of essential services and comforts adapted to university life. Les Estudines has captured a considerable share of the market thanks to its in-depth knowledge of student needs and the quality of its management.
• Club des étudiants, with the OSE brand and 9% of the market, has established itself as a major player since its creation in 1989. Operating primarily as a student accommodation manager, this brand is aimed at students seeking a total living experience during their university career.
• BNP Real Estate with its Studelites brand has held 8% of the market since entering the game in 1990. In addition to its core financial services, BNP Paribas has excelled in managing a portfolio of student residences that adapt to the changing lifestyles of learners from diverse backgrounds.
• Arpej UniverCity and Gécina Campuséa: With 8% market share each, Arpej UniverCity and Gécina Campuséa are two other giants shaping the student accommodation sector in France. Arpej, whose origins date back to 1898, boasts a long history and expertise in student accommodation management. in contrast, Gécina, which entered the market in 2007, has rapidly gained momentum.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 01/06/2021

Summary and extracts

List of charts

• Évolution du nombre d'étudiants en France
• Répartition des étudiants français dans les différents types d'établissements
• Les villes les plus en tension sur le logement étudiant
• Loyer moyen des studios dans les villes les plus chères de France
• Loyer mensuel moyen en fonction du type de logement
• Répartition par région des étudiants étrangers en France
• Évolution du nombre d'étudiants étrangers en France
• Origines géographiques des étudiants étrangers en France
• Préférence des étudiants sur le type de logement
• Qui sont les garants des étudiants ?
• Comment se logent les étudiants français ?
• Estimation du chiffre d'affaires du marché de la résidence étudiante
• Répartition des logements en fonction des types de bailleurs
• Évolution de la taille du marché mondial des résidences étudiantes
• Évolution du nombre d'entreprises et des effectifs liés aux hébergements "autres"
• Chiffre d'affaires estimé lié aux hébergements "autres"