Positive momentum builds in CEE student housing and serviced living

Heribert Gangl, head of hotels and tourism at Erste Group Bank, said Central and Eastern Europe is entering a new phase of maturity in student housing and serviced living as demand spreads from more established Western European markets.

Speaking to Real Asset Media at EXPO Real 2025, he said: “There seems to be good, positive dynamics in student housing and serviced living in CEE now, spreading over from the more established, mature western markets, and these are also the CEE markets where we focus on and are very keen to find new assets in this asset class.”

Gangl highlighted that institutional activity is reshaping the market as major operators extend their reach across the region. “What we have seen is now that there are a few dominant players building really large, sustainable platforms who are also now expanding in these parts, and this is going to continue, I believe, with a few major brands and owners, as investors are developing this space currently, especially due to student housing.”

He added that although inflation-led rent growth may begin to ease, demand drivers remain strong. “I think in the last two years this growth has obviously been driven by the overall inflation, the underlying inflation, and with that, the rent increases in the residential market, so I would expect this to slow down with the slowing inflation rates as well.”

He said: “But overall there’s still a good growth perspective in terms of demand and on the rent side for student housing and serviced living products and co-living products, which is very much linked to the local residential market.”