This would bring the total to over 205,000 beds, deploying a further €15.8 billion of capital.

For the second year in a row, Southern Europe remains at the top of the agenda for investors. Spain (15%) and Italy (13%) are ranked as the most sought-after locations, with a further 8% considering Portugal. These markets continue to have very low provision rates, while also recording rising international student numbers, which is putting pressure on existing PBSA and underpinning the need for more. This increased investor attention has been reflected in investment activity. Over the first nine months of the year, Southern Europe has accounted for 27% of total investment in European PBSA, the highest level on record.

The UK (13%) has risen back up the priority list for investors, having only ranked joint sixth in 2025. This in partly due to investors who have built sizable platforms in Europe that are now looking to enter the UK for the first time.

Germany (11%) and France (8%) complete the top five. Both are among Europe’s largest student markets and have recorded annual international student growth of over 3% over the past five years. Although provision rates are higher than in some other countries, much of their publicly owned stock needs modernisation, creating opportunities for purpose-built, modern and sustainable accommodation that is better aligned with students’ needs.

The Netherlands remained low on the priority list for investors for the second year. In 2024 11% of respondents were looking to expand in the country, but this has dropped to 3% in 2025 and 4% in 2026. This likely reflects the market uncertainty caused by the previous plans to cut the level of international students and reduce the number of English Taught Programmes (ETPs). However, with recent announcement of plans to drop the compulsory assessment of ETPs this should bring a degree of regulatory stability to the market that could bring back investors.

Richard Valentine-Selsey, Head of European Living Research & Consultancy at Savills, comments: “European PBSA is expected to continue attracting global capital, although its sources may shift. North America accounted for close to two fifths of cross-border investment between 2021 and 2025. In our latest barometer, 63% of respondents are expecting to see an increase in capital from Asia Pacific. In terms of industry trends, the rise in prominence of AI is the biggest shift since last year's survey. AI is already changing the student booking journey, influencing how they find rooms and when they engage in the booking cycle. Moving forward, we expect the impacts to be further-reaching, including influencing investor and operator practices and margins.”

Jennifer Leach, Managing Director at The Class Foundation, says: “Closer collaboration between investors, operators, universities and policymakers will be essential to balance investment viability with student affordability. Stable, predictable regulation gives investors greater confidence to commit capital, while public-private partnerships can help unlock sites and align accommodation with the latest sustainability standards and with student needs. The Class Foundation aims to provide a platform for this engagement, helping translate shared ambitions into practical solutions.”

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Notes to Editor:

* Respondents to the 2026 survey included 19 investors and operators with over 107,000 beds across the continent, equal to c.12% of all private PBSA beds in Europe, with an asset value of c.€18.1 billion.