The student residence market - France (2024)

1.2 Ever-increasing global demand

In ****, the global student residences market was valued at US$** billion. With a compound annual growth rate of *.**% forecast from **** to ****, it is projected to reach $**.*** billion by ****. This market is characterized by continuous demand and a steady flow of tenants, even during the summer months, reflecting the stable use of housing throughout the year.

The student residence sector is booming, driven by a highly mobile student population for academic reasons. Theoverall increase in the student population and the growing desire to spend for a better standard of living are key factors fuelling this growth. North America is set to become the largest market for such accommodation, due to the growing demand for such facilities.

However, the sector faces major challenges, including rising construction costs and energy prices, which threaten the viability of development and could reduce suppliers' operating margins. [***]

evolution of the global student residences market size World, ****-****, in billions of euros [***]

Europe is home to around ** million students, with France, Germany, Spain and the UK leading the way, each hosting over * million students. The student residence market is particularly dynamic in France and Germany, where it has seen significant growth since ****. In the UK, although the student residence ...

1.3 A booming national market

at the start of the **** academic year, there will be **,**** student residences in France, including ***,*** managed by the Crous. The remainder would be spread across *,*** residences. These residences are either managed by private commercial players (***) between **** and ****, an expansion mainly attributable to key players such as Cardinal Campus, Fac-Habitat and The Boost Society. [***]

Estimated student residence market sales France, ****-**** [***]

Demand for this type of accommodation is rising steadily, mainly due to the increasing number of students, including international ones, with France ranked as the world's sixth-largest host country in ****. To give you an idea, between **** and ****, the number of mobile students will increase by *%, reaching over ***,***. The housing occupancy rate remains at a robust **%, hardly surprising given the high demand.

Housing units by type of lessor France, in ****, in housing units TrouverUnLogementNeuf

The market is fairly concentrated, with the top five operators controlling almost **% of the housing stock, and the top fifteen more than three-quarters. The current market leaders are Résides Études, Nexity and Action-Logement in the non-profit sector. Despite the concentration of the market, there is a huge range of student residences on offer in France, with over *,*** different providers.

In response to the real estate and student ...

2.1 Students in France

For the ****-**** academic year, France counted *.** million students enrolled in higher education courses, all courses combined, a number that doubled between **** and ****. This growth was particularly strong in ****, due to French demographics, and in ****, following the previous year's exceptional success rate at the baccalauréat. However, since the start of the **** academic year, a slight decline in the number of students in France has begun, partly linked to the drop in the number of new baccalaureate holders, covid and reduced student mobility worldwide. As a result, the number of students enrolled in higher technician sections has fallen by *.*% in the school system, by *.*% at university and by *.*% in the CPGE. Despite this slight decline over the past two years, the French government, which has introduced numerous measures to make France even more attractive to foreign students, is forecasting a further *.**% increase in enrolments for the start of the ****-**** academic year. Demand for student residences is therefore unlikely to weaken in the near future, especially as most students are not currently housed in student residences, and the market still has plenty of slack before it suffers from lack of demand. [***] How many students are there in France? Number of students ...

2.2 Increasing student mobility

According to Unesco, in ****, France will be the *ᵉ most popular country in the world for mobile students, behind the Anglo-Saxon countries that offer training in English. The European Union is the top destination for the *.* million internationally mobile students, and in ****, France welcomed over ***,*** foreign students to its educational institutions, *% more than at the start of the previous academic year. As a result, nearly **% of students in France are of foreign origin, a figure that enriches French training and encourages cultural and scientific exchanges. number of foreign students in France France, **..-****, in thousands of people LesEchos; French Ministry of Higher Education The number of international students in France rose by **% between **** and ****, and this growth isn't going to stop any time soon, as France aims to reach the target of ***,*** mobile international students by ****. Indeed, in **** Edouard Philippe announced the implementation of the "Welcome to France" strategy, which facilitates foreign students' access to French universities, notably through simplified administrative procedures, assistance with access to accommodation and arrival in France, and the release of grants to provide financial support for less fortunate students. In ****, foreign students accounted for **% of enrolments in business schools, compared with **% in engineering schools. The trend is ...

2.3 Student housing preferences

In terms of accommodation, students unsurprisingly prefer to live in a large apartment such as a T*. Some, however, prefer to live in a shared room or apartment. obviously, this survey does not represent the reality of student housing solutions. Half of all students say they prefer furnished accommodation.

What type of accommodation do students prefer? France, in ****, in LocService

In ****, **% of students in France lived with their parents. Studies show that, in reality, this figure depends very much on the age of the students. As students get older, fewer and fewer live with their parents: at the age of ** or under, **% of students still live at home, but from the age of **, this rate drops to **%. This tendency to leave home is also associated with a decline in overall satisfaction with their new accommodation: **% of students staying with their parents say they are very satisfied, compared with only **% of those who have moved. How are French students housed? France, ****, in OVE Many students also find it difficult to find a guarantor, especially among foreign students, who are much more likely to use visal guarantees. Who are students' guarantors? France, in ****, in

2.4 Housing difficulties in France

Students report different housing-related problems, depending on the type of accommodation they live in. Students living in CROUS rooms, for example, are more likely to have major housing problems than those living with their parents or in the property of family or friends. The problems encountered vary: students in rented accommodation, whether on their own, as a couple or in a shared flat, and those in student residences outside CROUS first raise difficulties about the high price of accommodation, while those living in CROUS residences or with their parents tend to complain about the lack of space.

In non-CROUS halls of residence, **% of students report major difficulties with their accommodation, compared with **% in CROUS halls of residence.

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3.1 Value chain

3.2 The different types of player

A student residence project is developed under the management of a property developer, who first purchases the land and then oversees the development of the project through to the start of operations. During the construction phase, design offices or construction companies are commissioned by the developer to get the building off the ground. Once the building has been inaugurated, the residence manager will put in place the tools needed to enable the apartments to be rented out to students/young professionals/residents. The manager is not necessarily the owner of the residence. In France, property developers often take charge of running student residences once the construction phase is complete. The operator not only connects tenants with the residence, but also takes care of maintenance and services for residents, such as weekly cleaning, linen service, Wifi...

Design offices or builders

Some design offices or builders, such as Citeden, stand out for their fast and innovative construction methods, notably *D construction, **% of which is carried out in the factory, and the use of prefabricated construction, enabling the efficient realization of student residences. One of the major players in construction and project development is VINCI Immobilier, which is responsible for building a large proportion ...

3.3 Market features and recent regulations

The real estate sector has been very much in flux in recent years, and although the student residence market remains fairly stable, the dynamics are changing and investors are becoming increasingly scarce.

The Climate and Resilience Act, enacted in France on August **, ****, represents an ambitious effort to achieve carbon neutrality by ****. It targets several sectors, including housing, with a focus on the energy renovation of buildings , which are a major source of greenhouse gas emissions. In particular, the law prohibits the rental of very energy-intensive housing, known as "energy flats", to encourage their renovation. from ****, the most inefficient properties will be gradually withdrawn from the rental market, with deadlines extended to **** for slightly less energy-intensive homes. The first bans became effective at the start of the **** academic year, further widening the demand-supply gap and triggering a real student housing crisis, putting the market under even greater pressure. In response to this student housing crisis in ****, Sylvie Retailleau (***) have announced a plan to create **,*** new housing units by ****. The aim is to increase the number of student residences to *,***, totalling ***,*** units and ***,*** places by ****. This initiative includes converting obsolete offices into student residences and decentralizing the search for suitable buildings, drawing on ...

4.1 Precise description of the offer

Student residences often group together several types of accommodation in the same building, and offer a range of services, either included in the rent or extra.

The types of apartments offered are often :

Rooms, with shared kitchen and sometimes shared bathroom Studio apartments, with private kitchen and bathroom, between * m² and ** m² in size T*, bedroom separate from kitchen T*, bedroom, living room and kitchen Shared apartments for *, * or more people

The services usually offered include

Outdoor facilities including bicycle and car parking A fully-equipped sports room A communal living room Laundry facilities Intendant Wifi access Weekly cleaning service Laundry service

The main problem in the student residence market is that supply is still well below demand. According to AIRES, there is currently a shortfall of ***,*** units in France to meet the growing demand. Some cities, with less well-equipped infrastructure, are under greater pressure than others, and the list does not necessarily coincide with that of the cities with the most students or the most demand. For example, Paris, which is home to nearly a quarter of France's student population, is only **ᵉ in the ranking of cities with the greatest pressure on student accommodation.

Cities with the highest student housing demand Number ...

4.2 Some examples of rents

4.3 The latest innovations in the sector

A number of trends are emerging around the development of student residences.

Office-to-residential renovation

To meet government targets for the creation of student accommodation, the renovation of offices into residences is a widely adopted solution in France, as it is a simple and cost-effective way of rapidly obtaining more housing. This initiative aims to meet the growing demand for housing while optimizing the use of existing urban spaces.

The rise of coliving

Coliving is gaining in popularity, offering residents the chance to live in communities in which spaces and costs are shared. These environments combine private and shared spaces, and rely on a service economy to enhance residents' quality of life. The Boost Society, which was founded in ****, has succeeded in establishing itself in just a few years as the leader in coliving residences, a testament to the growing interest of younger generations in this type of organization.

International development

Some private players have been trying to expand their international presence in recent years, mainly in Europe. For example, Odalys Campus has announced the opening of the Odalys Campus Lamas residence in Lisbon in September, close to the Lusíada University, and is planning new openings in Granada and Zaragoza in ...

5.1 The 2004 LMNP law

France's LMNP (***) and furnishings, which can result in a clear reduction in taxable income.

This status also allows, under certain conditions, exemption from capital gains tax on the resale of the property if annual revenues do not exceed certain thresholds (***). As far as social security contributions are concerned, LMNPs are exempt if revenues are below €**,*** or represent less than half the household's total income. The flexibility of LMNP status means that owners can rent out their property to students, on a seasonal or year-round basis.e, making this type of investment particularly attractive for those seeking to generate rental income while benefiting from a favorable tax framework.

This law was initially coupled with the Censi-Bouvard scheme, which was abolished on January *, ****, and enabled the advantages of the LMNP law to be combined with an additional reduction for investments in new, furnished residential accommodation.

Nexity

5.2 Climate and Resilience Act

The Climate and Resilience Act, enacted on August **, ****, is a major legislative effort by France to combat climate disruption and strengthen resilience to its effects. It manifests itself through various measures applied to diverse sectors such as transport, advertising, energy, and housing in particular. The main objective is to achieve carbon neutrality by ****, in particular through the renovation of buildings, which account for a quarter of the country's annual greenhouse gas emissions. The measures are specifically aimed at eliminating very high energy consumption housing, often described as "energy passoires", in order to improve their efficiency and reduce their environmental impact.

Landlords are particularly targeted by this legislation, which prohibits the rental of the most energy-intensive housing (***) from January *, ****, with an extension to all G-rated housing from ****, and to F-rated housing from ****. In addition, since ****, the law prohibits the increase and indexation of rents for these properties, and reinforces obligations to inform tenants about the energy performance of the rented property.

These measures are designed to encourage landlords to carry out the necessary work to improve the energy performance of their properties. The aim is to gradually raise the minimum standard of energy performance required for a property to be considered decent ...

6.1 Player segmentation

M-habitat ; Studyrama ; Pappers

• Les Crous
• Nexity
• Résidence Etude Les Estudiantines
• Immojeune
• Studélites
• Arpej
• Campusea (Gecina)
• Fac-Habitat
• Espacil
• Suitétudes
• Capétudes
• Kley groupe
• Cap'Études
• CIUP Cité internationale universitaire de Paris
• Fac Habitat
• NEMEA Appart'Etud (Nemea groupe)
• Cardinal Groupe
• Youfirst
• Odalys Vacanses
• Le Club Étudiant OSE
• Studcity
• MGEL Logement