Belfast needs 6,000 more student beds by 2030

Belfast universities will need 6,000 additional student beds by 2030 as current supply is at capacity. Research conducted by Lambert Smith Hampton into purpose-built student accommodation in Belfast has highlighted that with student numbers in the city on the rise, the PBSA sector is particularly appealing to institutional investors and funds. Since 2016 the city has seen over 5,000 beds developed across 12 PBSA schemes in the city centre, housing students from Ulster University and Queen’s University Belfast. With seven sites accounting for 3,773 beds currently in planning, and more under consideration, the market is growing significantly. But demand for PBSA is set to continue in the city. UCAS has forecasted that there will be an overall 20% rise in Northern Ireland school leavers seeking university places by 2030, with many likely to consider places at Belfast. To deal with this increased demand, a recent university-led submission to Belfast City Council cited a need for 6,000 additional student rooms in Belfast by 2028-2030. Lambert Smith Hampton director Andrew Mearns said: “Over the past eight years there has been a significant increase in the number of newly developed PBSA schemes across Belfast city. “Primarily due to Ulster University relocating to the city, Belfast now benefits from a student population that is estimated to be around 45,000.” “This new market brings huge opportunity for investors. It’s still early and we are yet to witness any significant investment transaction volume but we predict this will change moving forward with PBSA occupancy levels now maturing. “Growth in this market long-term could feed into the future growth of build-to-rent in Belfast as students become graduates and young professionals.” Lambert Smith Hampton senior research analyst Claire Shaw said that prior to 2016 the ratio of students to PBSA bed spaces in the city was 10:1, which was high compared with other UK university cities at the time, like Cardiff which was 5:1. Shaw said: “In other cities, such as Liverpool and Sheffield, this market is now highly saturated with ratios looking more like 2:1. “We predict that the ratio in Belfast will be 5:1 by September 2024, which supports the suggestion that this is an appealing market for commercial real estate investors in Belfast over the coming years.” Photo by Richard Gardner/Shutterstock