- Cushman & Wakefield analysis shows national student bed demand exceeding 115,000 by 2034/35, leaving 68,000 bed gap with current supply of 47,000
- Projected increase due to growth in younger age cohorts and continued popularity of Irish universities among international students
- New supply required despite over €200 million investment growth in 2024
DUBLIN, 28 January 2025 – Student bed demand across Ireland is projected to grow to more than 115,000 by 2034/35, with new investment urgently needed to expand the current supply of only 47,000 beds, according to a new research report from Cushman & Wakefield.
Surging demand is being driven by the consistent growth in the numbers of full-time students in Ireland. This is due both to increases in Irish domiciled and international students. According to the report, in the past five years, the number of Irish domiciled full-time students has risen by 7% while international student numbers have increased by 36%. Looking ahead, the number of 18-25 year olds across Ireland is forecast to increase by around 80,000 over the next decade.
Overall supply across the Purpose-Built Student Accommodation (PBSA) segment has failed to keep up with demand so far, with the total stock of public and private beds increasing by approximately 1,300 beds over the past year, a growth rate of only 3%.
The large and growing gap between demand and supply in the student market means that the path of least resistance for student rents appears to be higher over the medium term. Looking ahead Ireland urgently needs greater levels of investment and bed supply in the student market to alleviate these growing supply-demand imbalances.
Multiple rate cuts by the European Central Bank in 2024, drove a recovery in transactions within the PBSA segment in 2024. Scape Dublin, a 298 bed prime residence, came to the market in early 2024 via Cushman & Wakefield and sold for approximately €79 million. DWS’s Point Campus (the largest private student residence in Ireland at 966 beds) was also sold for approximately €150 million in Q4 2024.
Tom McCabe, Head of Research & Insight, Ireland, Cushman & Wakefield, said: “Demand for purpose-built student accommodation in the Irish market has gone from strength to strength in recent years and our analysis indicates that this trend is likely to continue over the next decade.Supply will continue to lag surging demand, with a dramatic increase in investment required.
It is critical that Ireland capitalises on strong investor sentiment towards the student accommodation segment. On the financing side of things, gradually lower interest rates should help scheme viability but unfortunately construction costs remain elevated compared to pre-2021 levels so supports in the form of subsidies and/or VAT reductions should be considered to spark development in the segment. Finally, in our view Ireland’s approach to rent caps (which also applies to the student accommodation segment) warrants a rethink if we are to harvest the investment needed to reduce the growing supply/demand imbalance in the market.”
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