The opportunity 30 Real Estate Investment 2022 The purpose built student accommodation sector Demand for UK higher education remains strong, with a record 39.5% of over 18’s in the UK making applications and a 14.7% increase in applications from international non-EU students in the 2020-2021 academic year. The purpose built student accommodation sector (PBSA) is now valued at around £60 billion, with the last five years having seen an average year-on-year transaction volume of around £4 billion. Hybrid schemes are emerging, combining PBSA, co-living, and in some instances senior living, in new schemes focused on building communities. The PBSA sector continues to show resilience to macro-economic changes and, despite significant growth in delivery of new stock and capital investment, there’s still a structural undersupply in key locations. Post-pandemic, and in response to increasing domestic and international interest in the UK higher education system, there’s an opportunity for investors and developers to create new sustainable stock that better reflects how people want to live, study and work.