For investors rethinking their portfolios in 2025, the question isn’t “what’s new”—it’s “what works.”
Amid shifting interest rates, inflation cycles, and volatile global markets, serious capital is flowing toward income-generating asset classes that offer clarity, structure, and consistency. That’s why purpose-built student accommodation (PBSA) has quietly emerged as one of the most preferred real estate sectors globally—and why it’s now moving from mature markets into first-mover ones.
A Market That Didn’t Flinch
According to Savills, the UK PBSA sector attracted £3.5 billion in investment in 2024—up 13% year-on-year, in one of the most challenging capital environments of the past decade.
What makes that remarkable isn’t just the number. It’s the fact that while fundraising slowed, interest rates climbed, and political uncertainty swirled around student visas, PBSA continued attracting institutional capital—from Blackstone, Brookfield, Greystar, and Goldman Sachs.
This isn’t an emotional play. It’s a data-backed thesis. Student accommodation offers:
- 90%+ occupancy rates in mature markets
- Predictable, recurring rental income
- Professional, handsfree operations
- Demand that isn’t seasonal—but demographic
And now, capital is chasing that same performance profile across Asia Pacific.
Asia’s Turn — And the Frontiers Emerging
Australia is already there. With over 80,000 PBSA beds under operation and 17,000 in the pipeline, it’s become the region’s most advanced student housing market. In some cities, PBSA rents rose more than 19% annually, according to Savills.
But what’s interesting isn’t just where capital has gone—it's where it hasn’t gone yet.
Markets like Pakistan, for example, sit at the start of a PBSA curve:
- 0 international-standard PBSA beds
- A growing urban middle class focused on education
- And, most critically, no competition—yet
That’s not just an opening. It’s a first-mover moment with the same fundamentals that triggered PBSA booms in more mature markets a decade ago.
Why Luna, Lahore Wasn’t a Concept — It Was a Correction
At One Homes, we’ve always positioned capital where structure meets scale.
When we introduced Luna, Lahore—Pakistan’s first purpose-built student accommodation for young women—we weren’t chasing sentiment. We were applying a global investment model to a real market gap. Luna sits within 3.5 miles of 12 universities, with over 100,000 students in reach. It offers investors dollar-linked returns, fully managed rental operations, and access to a proven global asset class—in a location that, until now, had no supply.
This isn’t just about being first. It’s about bringing international-grade real estate logic to a demand environment that already exists. Luna wasn’t a risk. It was overdue.
The Next Move Belongs to the First Movers
Student accommodation has already outperformed in the UK, Australia, and parts of East Asia. However, as those markets mature, investor attention is shifting toward untapped cities, underserved students, and education-focused economies where PBSA is still absent.
For investors searching for the best real estate asset class in 2025, the answer may not be in a new product, but in a new geography.
PBSA is already globally preferred. In the right markets, with the right structure, it’s now globally inevitable.
