Europe’s student housing market is entering a phase of consolidation: large-scale portfolios are replacing local projects, and international operators are beginning to compete not only on service quality but also on their ability to develop full university-city infrastructure. One of the key developments of 2025 was Macquarie Asset Management’s decision to create a pan-European platform based on two acquired operators — MILESTONE and BaseStack Living — which together manage around 12,000 units in purpose-built student accommodation (PBSA).
In practice, this marks the emergence of a new continent-scale player capable of developing PBSA assets simultaneously in Central, Southern and Western Europe — regions where demand for student housing has long exceeded supply.
Rising demand and persistent undersupply
The European student housing segment has faced a structural shortage in recent years. University hubs such as Vienna, Berlin, Prague, Madrid and Lisbon admit increasing numbers of students each year, including those enrolled in international programmes. According to industry analysts, the average provision of dedicated student housing in these cities covers only 15–20% of actual demand.
Against this backdrop, PBSA assets show very high occupancy levels: the new platform’s portfolio operates at 97%, making the segment appealing to long-term institutional capital.
What the new portfolio includes
MILESTONE has historically focused on residences in Central Europe — Austria, Germany and the Czech Republic. BaseStack Living, by contrast, has built a portfolio in Southern Europe — Spain and Portugal. The combined structure now spans a broad geographic footprint, including projects at various development stages.
Most assets are modern complexes with high standards for shared spaces: study areas, co-working rooms, kitchens, gyms and service zones. Monthly rents typically range between €450 and €900 depending on country and accommodation type.
Why Macquarie is scaling up
Macquarie’s interest in PBSA is driven not only by the stability of rental income. Europe is forming a new model of housing for students and young professionals: demand grows faster than supply, cities tighten energy-efficiency requirements, and universities increasingly prefer to partner with large institutional operators capable of providing predictable standards of service.
Macquarie has announced plans to expand the portfolio to 20,000 beds over the next several years. Potential growth markets include Germany, the Netherlands, Austria and Spain — all facing accumulated shortages and strong migration dynamics.
Impact on the market
The creation of a pan-European platform could mark the beginning of a new consolidation wave. Historically, Europe’s PBSA market was fragmented: numerous local operators, no unified standards and wide variation in asset quality.
The emergence of a structure operating across multiple regions enables standardised management, improved operational efficiency and access to larger transactions — both through acquisitions and development of new campus-style assets.
Outlook
If expansion plans materialise, the new platform will become one of the largest student-housing operators in the EU. Under current trends, demand will continue to grow: the number of international students is increasing, universities are expanding English-language programmes and new construction remains limited.
As a result, the market gains a player capable of influencing segment standards and economics, while cities gain a partner willing to invest in modern youth infrastructure.
Commentary from M24 Investment Division:
The creation of a pan-European PBSA platform reflects ongoing consolidation in the specialised student housing segment. The emergence of an operator with multi-regional coverage increases competition for high-quality assets and raises the share of institutional capital in the sector. Under conditions of structural undersupply and high occupancy levels, scaling such platforms may lead to standardisation, improved operational efficiency and a more transparent investment environment for PBSA assets.
