The number of new students in Italy fell by 2% per annum between 2004 and 2010, having peaked in 2003-04. This has been offset to a degree by an increase in the number of foreign students, growing by an average of 10% per annum over the past decade, although they account for just 3% of the total student population. Over half of new foreign students are from non-EU countries, dominated by neighbouring Albania (20%) and Romania (7%). China made up 8%, and this group is anticipated to grow fast.

The student housing provision rate in the country is just 2%, the lowest among the European countries we have analysed here. Some 65% of Italian students live with their parents and study in universities of their home region, one of the highest proportions in Europe.

Purpose-built student accommodation in Italy is typically provided by the university. Almost a quarter of these units are located in the region of Lombardy, in the north of the country, home to 15% of the national student population. The shortage is most acute in Lazio (with Rome at its centre), which is home to 12% of Italy’s students, but just 3% of its accommodation. Rents in dedicated student accommodation vary from less than €50 per week in Lecce and Taranto to over €100 per week in Milan.

Italy has yet to experience any significant institutional investment in its student housing market. To date there has been one fund, Fondo Aristotele, which focuses on investments including social housing, university development, senior housing, as well as student accommodation. This fund controls 2,900 units across four developments in Bari, Chieti, Milan and Rome.

While new student registrations in Italy are seeing a modest decline, the number of foreign students is increasing. More universities are introducing courses in English, such as Milan University, which will support this trend. This is particularly significant given the tendency of Italian students to live with their parents while they study.

Due to the poor state of Italy’s national finances, there is unlikely to be any significant new supply of student housing from the public sector in the near future. Yields are likely to remain attractive compared to other sectors of this emerging market in Italy. Milan poses the greatest opportunities for investment, given its large student market, high quality institutions and low levels of purpose-built student housing.

Taken from
Spotlight: European Student Housing