UK: Cushman & Wakefield’s European Living Investor Survey, which analyses market trends, investor priorities and strategic outlooks across living sectors in Europe, has identified strong investor interest in the purpose-built student accommodation (PBSA) sector for 2025.
Top investment destinations include the UK, Spain and Germany, but the report also highlights growing investor interest in Central and Eastern Europe, with Romania as a leading contender.
Romania provides a mix of rising rental demand, strong academic hubs in cities such as Bucharest, Cluj-Napoca and Timișoara and competitive development costs, attracting institutional investors who seek stable yields and greenfield opportunities. Trends in portfolio diversification and growing interest in emerging markets are also expected to boost investment in rental and student housing in Romania.
Vlad Săftoiu, head of research for Cushman & Wakefield, said: “Romania’s rental housing market is gaining increasing attention from institutional investors, especially in the context of broader European trends supporting the growth of the living sector. The rise of urbanisation, the demand for modern rental units, and the attractiveness of university hubs such as Bucharest, Cluj-Napoca or Timișoara position Romania as an emerging hotspot in Central and Eastern Europe. Furthermore, the growing interest in portfolio diversification, together with optimistic prospects for falling interest rates and capital value recovery, are likely to accelerate the development of PRS and PBSA projects locally.”
Strong structural trends, such as urbanisation, demographic shifts and a demand for quality rental housing, fuel the PBSA sector, which now holds 20 per cent of the total real estate investment volumes in Europe.
In 2024, investors allocated €33 billion to the private rented sector (PRS), while €6 billion went toward PBSA, designating PBSA as the most funded sub-sector for 2025.
Highlights:
● Cushman & Wakefield’s survey shows strong investor interest in PBSA for 2025, with Romania as a key contender
● Romania attracts investors due to rising rental demand, major university cities and competitive development costs
● Urbanisation, demographic changes and demand for quality rental housing support growth in Romania’s PRS and PBSA sectors
● In 2024, €33 billion was invested in PRS and €6 billion in PBSA, making PBSA the top-funded sub-sector for 2025
