The demand for privately rented housing among students is increasing in the Central and Eastern Europe (CEE) region, across the six major economies of Romania, Hungary, Czech Republic, Slovakia, Bulgaria, and Poland, according to consultants from Colliers. This trend is catching the attention of major investors.

While Czechia and Poland were in the spotlight for investors until 2021, last year, some expanded their activities to Romania and Serbia, where they already have residential rental projects in development.

The number of accommodation units in private student dormitories is around 2,500 in Bucharest, similar to the situation in Czechia, for example, which has only half the number of students in Romania. Accommodation costs range from 150 to 300 euros, depending on the number of rooms and the offered comfort conditions.

The private student housing market is booming in the CEE-6 countries, and Romania, with almost 600,000 students, is following this growth trend.

In Bucharest alone, there are approximately 175,000 students attending various faculties, but the housing supply for them is limited. Private dormitories represent an alternative housing solution that can meet the increasing demand.

Accommodation spaces in university dorms do not exceed 40,000 places, and there are still about 2,500 places available in private dormitories.

The availability and quality of student housing in the CEE region vary by country and city, according to Colliers' data, with large cities and university centers offering the most options, both in terms of university dormitories and private ones.

Last year, the CEE-6 region recorded almost 2.7 million students, of which 9.5% came from abroad, and two-thirds are studying in Poland and Romania. Specifically, 1.2 million students are enrolled in Polish universities, while nearly 600,000 students are studying in Romania, with most of them accommodated in the capital.

This is no longer a future consideration for the development of the residential rental segment as a whole. Colliers consultants are currently in talks with several developers and investors regarding the construction of complexes exclusively dedicated to rental in several areas of Bucharest.

The development potential for this sector reaches around 5,000 units in Bucharest in the next 2-3 years. Until now, the demand for this type of housing has been covered almost exclusively by small investors who bought one to three apartments for investment purposes.