Germany Student Accommodation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The Germany Student Accommodation Market size is estimated at USD 5.06 billion in 2024, and is expected to reach USD 6.72 billion by 2029, growing at a CAGR of 5.45% during the forecast period (2024-2029).

Over the years, international students studying in Germany have observed a continuous increase in international and domestic terms. More than 350K international students attended a German higher education institution during this current year academic year, an 8% increase from the previous year and a new record. Countries with the highest share of the inflow of their students to Germany are India, China, Russia, Austria, Syria, and Iran. The share of part-time students at the tertiary level in Germany was high compared to the previous year, It shows that large share of students in Germany attending regular education, which plays a major part in student accommodation market demand. Germany is a country spending a large share of its GDP (4.6%) in 2022 on education, leading to better institutions at the secondary and tertiary levels. The country also encourages more students to choose Germany for their education.

With the advent of Covid 19, the student accommodation market in Germany and Europe observed a fall in revenue and increased operating costs, with students returning to their homes. It leads to a halt in pipeline projects to expand student accommodations. As the covid cases started reducing, persistent fear among students of the virus spread led student accommodation providers to develop strategies for operating post-lockdown.

As the impact of Covid 19 reduced with mass vaccination programs, students are returning to their colleges, leading to a revival of business for student accommodation providers. With 18 million students enrolled for tertiary education during 2020, of which 60% enrolled in bachelor's degrees, the covid-19 revival is creating business opportunities in the student accommodation market in Germany, with students demanding more hygienic and clean stay.

Germany Student Accommodation Market Trends

Cost of Living In Germany Affecting Student Accommodation Market

Universities located in different cities and difference in cities living expense is among the major factors students look over while finalizing a location and university of their choice. Some of the best cities that students consider include Munich, Berlin, Stuttgart, Frankfurt, Dresden, Aachen, Bonn, Hamburg, Cologne, and Leipzig. These cities provide students with top-ranked universities with diverse communities and prospects. These trends among student choice lead most of the student accommodation providers to invest in these cities for their business.

During the Winter Semester of 2021, Bavaria, Hesse, and Berlin were among the states with a student population, leading to many students entering the student accommodation market.

Accommodation price for students varies by the city in Germany. For Berlin average cost of rent varies from USD (1001-1,344) per month. Similarly, for other countries of Hamburg, Munich, Frankfurt, and Stuttgart, the average cost ranges from USD[(1043.12-1463),(1,420-1,902),(1,526-1,530) and (1005.21-1,383)] respectively in the year 2021.

Increasing Enrollment of International Student

With the resumption of travel bans and restrictions, international student enrollment rose. In 2021, at least 330,000 international students were enrolled in universities in Germany. Germany in 2021 includes over 400 universities offering courses in bachelor's, master's, and Ph.D. programs. Many students are enrolled every academic year, creating demand for student accommodation.

The soaring price of education across the globe attracts many students to study in german universities, creating positive externalities for the student accommodation market. Almost 90% of the degree programs offered by public students in Germany are free of tuition, providing free space for students to spend on accommodation.

As per a study by the German organization international Students in Germany observed continuous growth over the years, from 394,665 students enrolled in higher education in 2019 to 416,437 in 2021, with continued growth expected over the coming years.

Germany Student Accommodation Industry Overview

In 2021, Germany's Share of the population in the age group (18-24) was comparatively low compared to other age groups and countries in the EU. Population under the age group of (18-20) years existed at 2.4 billion, and for (21-24) years population was 3.7 million. As a large part of the student accommodation business is driven by the tertiary education segment age group, this low growth of the population segment leads to student accommodation providers. They also depend on international students and compete for increased market share.

During 2022, Uni Acco, University Living, I am Expat, Amber Students, GSA group, and other accommodation providers, with varying prices, services, and locations, were competing for an increase in their share in the market combined with continuous expansion.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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