QX SAIE 2025 Key Insights: Future of PBSA & Student Housing

The QX Student Accommodation Insights Evening (QX SAIE 2025), hosted at The Shard, brought together some of the most influential voices in Purpose-Built Student Accommodation (PBSA). Against the backdrop of a rapidly evolving sector, industry leaders, investors, and operators shared insights on the opportunities and challenges shaping PBSA today and in the future.

From the impact of AI and automation to shifting student demographics and the rising pressure of affordability, the discussion highlighted both the resilience and the need for adaptation in the sector. This article distils key takeaways from the panel discussion, offering a forward-looking perspective on where PBSA is headed.

1. Investment Confidence in PBSA is Strong—But Selective

Despite a challenging macroeconomic environment, the investment outlook for PBSA remains robust. Global capital is increasingly interested in UK PBSA, with student accommodation ranking among the top three real estate asset classes for institutional investors.

However, investors are becoming more selective, focusing on high-quality developments in prime university cities. Demonstrating strong occupancy rates, clear rental growth, and operational efficiencies is crucial for securing funding. Additionally, the market is gravitating toward newer stock, as compliance with building safety regulations and evolving student preferences make modern developments more attractive.

While private investment continues to flow, universities also have a growing role in shaping the sector, with partnerships and nomination agreements becoming a preferred model for securing stable occupancy and long-term viability.

“Investors aren’t shying away from PBSA, but they are scrutinizing opportunities more than ever. The right locations, future-proofed designs, and flexible models will be key to attracting capital.”

2. AI and Automation: The Biggest Disruptor in Student Housing?

Technology, particularly AI-driven automation, is set to reshape how PBSA is managed and operated. From leasing and revenue management to maintenance and tenant engagement, AI improves efficiency and enhances student experiences.

Key AI Trends in PBSA:

AI-powered leasing and search: Students are increasingly discovering properties through AI agents rather than traditional search engines. This shifts how property managers should think about digital marketing and discoverability.
Operational automation: AI is already reducing administrative burdens, allowing on-site teams to focus more on hospitality and student engagement rather than paperwork.
Smart buildings: IoT and AI-driven maintenance solutions are helping reduce costs, optimize energy use, and create more responsive living environments.

Rather than replacing human roles, AI frees staff from repetitive tasks, enabling them to provide a higher level of service and community engagement.

“PBSA is becoming as much about hospitality as real estate. AI allows staff to focus on human interactions rather than getting bogged down in admin.”

3. Flex Living & Hybrid Models Are the Future

A major theme of the discussion was the blurring of traditional real estate categories. PBSA, Build-to-Rent (BTR), and co-living increasingly converge into flexible living models, giving operators more adaptability in response to shifting demand.

Why Flex Living is Gaining Traction:

It allows operators to pivot between student, professional, and short-term tenants as market conditions change.
It provides a buffer against fluctuations in student demand, especially in cities where international enrolments are volatile.
It aligns with Gen Z and Gen Alpha preferences—today’s students and young professionals seek flexible, experience-driven housing options.

This shift is already common in Europe, where student housing and young professional co-living often exist within the same developments. In the UK, planning policies and regulatory frameworks may need to evolve to accommodate this model more effectively.

“Future-proofing PBSA developments means designing for flexibility. Investors and operators who build adaptability into their models will be more resilient to market shifts.”

4. Affordability: The Industry’s Biggest Challenge

With PBSA construction costs at an all-time high, the sector is grappling with a critical affordability challenge. Students are becoming more cost-conscious, yet high-quality accommodation remains in demand. The question is: How can PBSA balance cost pressures with student expectations?

Potential Solutions:

Smarter design efficiencies: Modular construction and multi-purpose spaces could help reduce build costs while maintaining high standards.
Flexible leasing models: Shorter lease terms or varied pricing structures could provide students with more affordable options.
University partnerships: More nomination agreements and long-term collaborations with universities could drive stability in occupancy and pricing.

However, developers and operators must be cautious—removing too many services or amenities in an attempt to lower costs could lead to lower demand and weaker occupancy rates.

“There’s a fine line between making PBSA more affordable and maintaining the quality and experience students expect. The industry needs innovative solutions that don’t compromise value.”

5. International Student Demand is Changing

The UK continues to attract a substantial volume of international students, but the demographic mix is shifting. While students from China have historically driven premium demand, there is now an increase in enrolments from India, Nigeria, and Pakistan—often with different budget expectations.

At the same time, the UK’s immigration policies and global competition for students are influencing decisions on where students choose to study. Universities in Australia, Canada, and parts of Asia are becoming more aggressive in attracting international enrolments.

What This Means for PBSA:

Operators need to offer a wider range of price points to accommodate students with diverse financial situations.
Marketing strategies must adapt to changing international student preferences and concerns.
Universities and PBSA providers may need to work more closely to create affordable, high-quality housing solutions that attract overseas students.

“International students remain a vital part of the PBSA demand equation, but providers must adapt to shifting financial realities and geopolitical factors.”

Final Thoughts: The Future of PBSA in a Dynamic Market

The QX SAIE 2025 panel discussion made one thing clear: PBSA is at an inflexion point.

Investment interest remains high, but operators must strategically navigate rising costs, regulatory shifts, and evolving student expectations.

Technology will continue to be a game-changer, reshaping operations, tenant experiences, and marketing.
Flex living models will provide resilience, allowing multi-use accommodation that adapts to shifting demand.
Affordability challenges must be met head-on with innovative leasing, design, and partnership solutions.
The international student market is changing, requiring a fresh approach to pricing and engagement.

The next five years will be defining for PBSA, and those who embrace smart investment, operational efficiency, and adaptability will be best positioned to thrive.

Want to Learn More About the Event?

Explore the event summary and snapshots from QX SAIE 2025 here.

Originally published Feb 19, 2025 10:02:25, updated Feb 27 2025

Topics: PBSA, QX Insights