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(Visited 55 times, 1 visits today)

Milan. New developments in the Expo area

05 April, Il Sole 24 Ore

According to the experts of the sector, Italy offers many opportunities. Considering university towns, they offer a good value for money, and the great educational quality of some of them attracts more and more international students, in addition to the demand from the domestic students.

The gap between the need for accommodations and what is actually on offer is huge, offering great potential for developers and investors, and students also will definitely benefit from new housing developments. “Italy is growing fast” – explains Stefan Kolibar from Student Marketing – “student housing has gone from 720 million euro in 2007 to 6.9 billion in 2017”. We’re still far from realities like London or Paris, respectively with 101,470 and 75,046 international students. Rome and Milan are already hosting 24,395 and 18,208 foreign students. However, the available beds are, according to Student Marketing, only 5 thousand in Rome and 6,712 in Milan.

According to the survey by Student Marketing on the Milan market, the coverage rate is equal to 3%. Milan has 34 universities, three of which are top-rated at international level (considering three charts: QS World University Rankings, Shanghai Ranking, and Times Higher Education World University Rankings).

The Italian students looking for an accommodation are 199,958 (in 2017) with an average growth rate of 5.2% for the past few years. According to Student Marketing, this growth may translate into potential expenditure equal to 22.154 million euro yearly. While international students are 18,208; of these, 14,163 stay longer than one year. Hence, the potential value for this market is assessed around 8.289 million yearly. In addition, there are 28,423 young workers from abroad representing potential market worth 17,140 million euro yearly. We must also consider young travellers, which are 1.174 million, representing a market valued around 25 million euro.

Whereas the offer is currently for 46 student residences for 6,616 beds in total, with prices going from 350 euro to 1,309 euro per month. From a tourism point of view, the rooms catering to young travellers are 23,950 with an average cost of 127 euro per night, taking into account that 60% of these facilities are dedicated to business travellers. The research analyses every single student residence, showing how much they differ one another, with prices amounting to 1,309 euro monthly in the Rubattino, Turro and Città Studi campuses, 1,127 euro in Torrescalla and Collegio Viscontea and Castel Barco. All these facilities are fully occupied, hence it’s easy to realize the huge demand and the great potential for investors.

The sector is very dynamic. Università Statale in Milan has recently communicated that its scientific faculties will be moved to Città Studi, in the campus that will rise from the former Expo area. This area will also accommodate a student housing project. Hines has recently announced an investment near the Bocconi university for 80 million for student residences, as well as in Florence, with the objective of reaching 500 million in the next two years. There are also many initiatives in the pipeline of Cdp for the development of student houses throughout the country. In Santa Maria, in Venice, for instance, a new student residence is currently under construction with public as well as private funding, with funds guaranteed by Cdp and by Fabrica Immobiliare Sgr, this latter holding a portfolio of 4,500 beds for students.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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