The global outbreak of COVID-19 impacted numerous sectors, including real estate and student accommodations. Purpose-Built Student Accommodation (PBSA), specifically tailored to serve the needs of university students, experienced a series of fluctuations due to the pandemic. As we transition into the post-COVID era, it’s essential to understand the key factors shaping the PBSA market. Here’s a closer look.
1. Shift to Blended Learning
One of the most significant impacts of the pandemic on higher education was the rise of online and blended learning. While remote learning may reduce the immediate need for proximate accommodations, the blended model — a mix of online and in-person classes — still demands students to be near their educational institutions for part of their course. This continued need for close-by accommodations, albeit perhaps with a reduced urgency, will influence the demand for PBSAs.
2. International Student Flows
Borders closed and travel restrictions hit the influx of international students hard during the pandemic’s peak. However, as the world opens up and universities re-establish their global programmes, there’s an anticipated surge in international students. Their preference for secure and quality accommodations will bolster the demand for PBSAs.
3. Health and Safety Concerns
Post-COVID, health and safety have taken centre stage. Students and parents are now more concerned than ever about the living conditions. PBSAs that offer enhanced cleaning protocols, efficient ventilation, contactless technologies, and general adherence to health guidelines will be in higher demand.
4. Flexibility in Contracts
The uncertainties brought about by the pandemic have emphasised the need for flexible lease terms in PBSAs. Students and their families will likely lean towards accommodations offering shorter tenures, options for early termination, and safeguards against sudden institutional or global changes.
5. Economic Factors
Economic downturns, job losses, and general financial instability have led to tighter budgets for many families. This might influence the demand for luxury PBSAs. Conversely, there might be an increased demand for more affordable, value-for-money student accommodations.
6. Evolving Amenities
While amenities like gyms, communal lounges, and study areas have always been popular, the post-COVID era sees a rise in the demand for outdoor spaces, better internet infrastructure (for online classes), and spaces that allow for social distancing.
7. Community and Mental Wellbeing
Isolation and the challenges of remote learning have underscored the importance of community and mental wellbeing. PBSAs that focus on creating a sense of community, perhaps through events, workshops, and support services, will likely be more attractive to post-COVID students.
8. Investment Landscape
PBSA has historically been seen as a resilient and lucrative sector for investors. However, the pandemic’s uncertainties may lead to a more cautious approach. Investment dynamics will depend on the perceived long-term impact of the pandemic on higher education and student housing needs.
9. Digital Integration and Virtual Experiences
The digital pivot is more pronounced post-COVID. From virtual tours of the accommodations to app-based room controls and maintenance requests, a seamless digital experience will be a crucial determinant in PBSA selection.
10. Decentralisation from City Centres
While central locations near universities have traditionally been prime spots for PBSAs, the rise in remote learning and blended models might lead to a decentralisation trend. There could be an increased interest in locations slightly away from city centres, offering peace and spaciousness, while still providing good connectivity to universities.
Conclusion
The PBSA market, like many other sectors, is navigating uncharted waters in the post-COVID world. While there are challenges, there are also opportunities for growth, evolution, and innovation. By understanding and adapting to these influential factors, PBSAs can position themselves for continued success in the ever-evolving landscape of student accommodation.
