Krzysztof Kowalke, Joanna Nowak
Private Student Housing Market - Current State and Development Prospects on the Example of the Tri-City Market
Purpose - to show the character of the private student housing market and to assess the development potential of this market in Poland from the perspective of the local Tri-City market.
Design/methodology/approach - in the course of achieving the objective of the article, student PBSA (Purpose Built Student Accommodation) market in Europe and Poland was presented. On this basis, factors that may have an impact on the development of the private PBSA market in Tri-City were identified and analysed. In the article the following methods have been used: deductive inference, simple statistical methods, and the internal rate of return (IRR) method.
Findings - conducted analyses show that the prospects for the development of the market of private PBSA in Tri-City are good. This is demonstrated by the dynamic increase in the number of foreign students, the low standard of much of public PBSA and the relatively low rate of the number of beds to the number of full-time students, indicating the existence of a supply gap. A positive element that should stimulate the development of this market are relatively high rates of return on investment in PBSA in Tri-City.
Research limitations - rents in private PBSA are much higher than in public PBSA. For this reason, it should be analysed whether students of Tri-City universities would be able to afford higher prices in exchange for better living conditions offered in private PBSA. The study did not address the topic of student accommodation preferences.
Research implications - conducted research concerns the development potential of the private PBSA market. It indicates factors which can stimulate it, but also those that can slow it down. Such knowledge may be useful to investors who want to realize such investments in Tri-City.
Keywords: student housing market; PBSA; investment; universities
JEL codes: G11; I22; R31;
Article type: review article
CITATION (APA): Kowalke, K., Nowak, J. (2020). Private Student Housing Market - Current State and Development Prospects on the Example of the Tri-City Market. World of Real Estate Journal, 112(2), 4-19.
DOI: https://doi.org/10.14659/WOREJ.2020.112.01
