Housing for students may become a promising segment of the commercial real estate market in Russia - RWM Capital
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Housing for students may become a promising segment of the commercial real estate market in Russia

12.08.2021

In the next four years more than 36 billion rubles will be allocated to develop the infrastructure of educational institutions of higher education. According to the instruction of the President of the Russian Federation (March 17, 2021, No. Pr-419), 36 facilities with a total capacity of 23,644 beds are to be built. Thus, a new promising segment appears on the Russian commercial real estate market.

Projects for modern student housing construction are successfully implemented in Europe, where such real estate is no longer an "alternative" object of investment, but an independent direction, attractive to private investors. The demand for investment in quality modern student accommodation in Europe has increased significantly over the last few years. Felix Blinov, General Director of RWM Capital Investment Group and Chairman of the Russian Managers and Developers Guild’s Investment Committee told about it at the business brunch dedicated to commercial real estate arranged by the Kommersant Publishing House in Moscow.

"We implemented a student housing project in Seville, Spain — we built a 250-bed student campus within a 3-minute walk from the main faculty of the University of Seville. The new six-storey building with an area of about 7 thousand square meters was designed by the renowned Spanish architectural bureau ORFILA11 and provided with all necessary infrastructure. Investments in the project amounted to 16 million euros. The campus will open its doors to students as early as this September," Felix Blinov said.

The speaker noted that today there is an opportunity for stable yield in the student real estate market in Spain, as the imbalance of supply and demand and high capitalization rates create interesting opportunities for investment. In Russia, the construction of modern student campuses is predominantly funded by the government. Attracting private capital to such projects is complicated by new regulations on student dormitory construction, which took effect on July 1, 2021. As a result, the implementation of such projects in Russia is possible only in the format of public-private partnership.

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