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Summary
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 housing 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.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 24/04/2024
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.
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