Edition 2013
THE CLASS OF 2020
The Next European Renaissance Investment Special: European Student Housing goes Mainstream Power Brokers: Money is not the Issue Insider reports from around Europe, Brazil and America Is International Higher Education driving Europe’s recovery? Your Next Challenge: How to meet tomorrow’s student demands The Rise of the University City A competitive world: student talent and dollar worth fighting for
BACK TO CLASS Editorial This year’s conference is our 3rd and we have come a long way. We are widening our focus, and are now looking at the European student market in a global perspective, as we see the growth of international higher education accelerate. All students are part of a global story, and it is important we understand all the different stories in order to create housing that works. One other important reason why we are expanding the focus of The Class of 2020 outwards rather than inwards is to expand the exchange of ideas and knowledge. There are so many ways to provide student housing and if we are to improve our local situation, we should look at how others are doing it and learn from them. We see that cities such as Amsterdam are bringing trade delegations to Asia and South America, led by the mayor, with local universities and housing companies, in order to increase the flow of students back and forth. With these types of initiatives happening (and there are many more examples) we cannot afford to only look at our own back yard when discussing the future of student housing.
What is fundamental for The Class of 2020 is that it is independent and that everything we do and organise is with the mantra “How can we improve the situation for students in the future?” In the upcoming years we hope to expand The Class of 2020 to include data on operating systems, investment performance and how to build energy efficient student rooms. We are always looking for partners to contribute data and research and join the growing team. With your continued support we can create an independent platform which opens the lid on what works and doesn’t work for successful student housing. We look to establish an international board and we invite anyone that feels compelled to contribute to contact us. Together we can really improve the market for the advantage of every student in the future. Frank Uffen Co-founder The Class of 2020
This year we have more European and international participants and contributors than ever. The Class of 2020 is now the largest European student housing platform that is open to anyone and everyone, and it is growing. There are some serious movers and shakers and policy makers joining the conference. We are broadening our view on students by positioning it, correctly, as part of the youth travel and education sector. We have banks and investors, universities and housing companies, policy makers and researchers. We have all aspects of the sector attending, from institutional fund managers right down to furniture and ICT providers. Themes of the 2013 edition In this publication we explore how higher education and student housing can be a catalyst for a new European Renaissance. Our university cities are attracting growing numbers of international students. If we invest smartly we can provide new opportunities for our underemployed youth and retain the global talent our regional economies need in order to compete. A special investment section shows opportunities across continental Europe. Investors and operators are ready to support our university cities with world-class student housing. However, lack of transparency and outdated rules remain barriers to entry. This is one of the reasons we have partnered with IPD to create a roadmap to a European student housing investment performance benchmark. And finally, in the section The Student Experience we try to learn more about what drives students, how they make their decisions on education, travel and housing.
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TABLE OF CONTENTS 4 6 10 13 14 20 24
MOBILITY, MOBILITY, MOBILITY Andrea Gerosa on the future of Europe’s youth HIGHER EDUCATION TAKES OFF Competition and digitalisation are reshaping the European university BOLOGNA PROCESS IS THE EURO OF HIGHER EDUCATION International students spur growth in European education markets THE RENAISSANCE OF THE COLLECTIVE DOMAIN Rudy Stroink predicts the end of the dominance of the public domain TALENT IS THE NEW MANTRA University cities discover need to attract and retain young people WHEN THE CAMPUS BECOMES THE CITY From islands to networks of knowledge THE STUDENT DOLLAR IS WORTH FIGHTING FOR A look at national marketing campaigns to attract students
THE STUDENT EXPERIENCE
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THE RISE OF THE UNIVERSITY CITY
THE RESURGENCE OF LEARNING COMMUNITIES Patricia Martinez reports from the US TRAVEL TO LEARN, NOT TO ESCAPE Education at the heart of the youth travel boom THE STUDENT’S CHOICE Experts reflect on how students choose their international academic careers TECHNOLOGY BUILDS STUDENT COMMUNITIES The student experience is enhanced by online platforms GENERATION Y WANT IT ALL NOW! How to meet the expectations of today’s students
INVESTMENT SPECIAL 39 40 40 41 41 43 44 48 58 61
Emerging asset class Global capital gravitates towards student housing INREV CEO warns against herd behaviour Bouwfonds IM launches new student resi fund Heavyweight investors get on board Student submarket en route to graduation Power brokers: money is not the issue COUNTRY REPORTS: exploring Europe’s emerging markets Germany, Austria, The Netherlands, Italy, Spain, France, Belgium MUTUAL BENEFITS DRIVE HOUSING PARTNERSHIPS Partnership models between universities and student housing providers THE CHARM OF THE SMALL
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LETTERS & INTERVIEWS
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STUDENT HOUSING GOES MAINSTREAM
LETTER FROM ITALY Stefano lo Rosso: University development means ‘the city of opportunities’ INTERVIEW: becoming a local business in each market Knightsbridge Student Housing about their international plans INTERVIEW: Spanish market becoming more competitive Melon District growing in and outside of Spain LETTER FROM SWEDEN Martin Johansson about building affordable student housing LETTER FROM HOLLAND Charlie MacGregor on the birth of The Class of 2020 THE CLASS OF 2014: taking it to the next level LETTER FROM BRAZIL Juliano Antunes reports from a Brazilian perspective
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The European renaissance: The rise of the university city The word ‘crisis’ continues to dominate the European mindset. Europe’s Generation Y is struggling to find the hope, opportunities and jobs that previous generations enjoyed. For no good reason, say a number of experts and reports. A second European Renaissance is possible if we endorse the dynamics of international higher education and transform our regional economies into global networks of knowledge and innovation. Europe is gearing up to leverage its unique higher education tradition and quality of life. Explore with us the incredible growth of international student mobility and the current drivers of higher education. And see how university cities, investors and student housing providers can team up to generate the economic growth and social mobility this and future generations both need and deserve.
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MOBILITY, MOBILITY, MOBILITY by Andrea Gerosa Europe is stuck. It’s blocked and stagnant. Stagnation is not just implied in that fatal word that we’ve been hearing everyday since 2009: crisis.
And these numbers seems to be confirmed by another survey of ex-participants of the Erasmus Mundus exchange programme: “54% of respondents state that their Erasmus stay was helpful finding a first job and 39% state a positive impact on their work tasks”.
Stagnation in Europe is, unfortunately, more the result of a depressed mentality. This is a vicious circle that started with the crisis, continued with the lack of opportunities and has resulted in paralysis.
The studies, and also common sense, paint a clear picture: young people who have experience abroad are more likely to be employed, start companies (which create jobs) and thus help the growth of a country.
Needless to say, once more the most endangered by this situation are young people. Previous generations saw their living conditions improving each year, but for the current generation - the so-called ‘digital natives’ - the outlook is not so positive. They are the first generation with negative future expectations, with the almost certainty of depending upon their families.
It is not only this generation ‘on the move’ that is telling us to support mobility, it is also the current economic situation that is urging us to embrace mobility.
The scariest is that these ‘digital natives’ face the prospect of being the first European generation to leave to their children a worse economic situation than the one in which they (we) have lived. I was born on the cusp. My older sister is ‘Generation X’, while my younger brother is a fully-fledged ‘digital native’ That makes me a kind of bridge between the two.
Europe desperately needs to pull out of stagnation. Young Europeans desperately love to move. Supporting youth mobility is a win-win situation. Let’s do it. Let’s move it! Andrea Gerosa is chief thinker at Think Young,
Make no mistake, we have no intention of blaming the ones who came before us. Nor of giving up that easily on our future. We have all the intention to fight back. Stagnation is not in our nature. Growing up with the Internet, social media and mobile phones, we are also very much aware of the importance of bikes to living in a carbon-savvy environment. There is one word that describes this generation: mobility. We simply cannot stand still. But these are just words. Let’s have a look at few numbers. “Regarding employability, the general trend reveals that Erasmus Mundus (student exchange programme) graduates show relatively low unemployment rates and are on the whole employed shortly after graduation. Only 18% of the EM graduates, who are now employed, stayed unemployed for six months or more after graduation”, reveals a graduate impact survey by the Erasmus Mundus Alumni Association. From the same survey: “Of the 66% Erasmus Mundus graduates who got a job, 41% found their job already during their studies or within one month after graduation. Only 13% of the graduates needed longer than six months to find an occupation.”
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The student experience
The growing appetite for international higher education has a profound impact on everything from youth travel, university programmes, student services and accommodation. Student populations become more diverse, and so are the housing and community needs. Universities and housing providers are exploring new and innovative partnerships to meet the expectations of students and their parents. How should local student housing models adapt to the changing demands of students? What can technology, internationalisation and social media do to create a true student experience?
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THE RESURGENCE OF LEARNING COMMUNITIES by Patricia A.R. Martinez What will The Class of 2020 be expecting from their residential experience? The current students in sixth grade will be the Class of 2020. Who are they now and what environment are they living in? What careers may be in existence in 2020 that do not exist today? As we look to create engaging student experiences and facilities that reflect the students’ needs as well as desires for the space, we must ask ourselves what we know about the student experience. How are we building strategic alliances to meet the ever changing demands placed upon higher education institutions by the students and families of today? What are we doing to ensure that the student has a holistic experience within our facilities? Employers are looking to hire students who have the ability to think critically with confidence to innovate, facilitate and lead small and large groups while working in a flat organization, operate in a diverse work environment, be a life- long learner and master information technology. Therefore, we must build/ renovate/retrofit facilities that allow for students to gain these skills and abilities.
prohibitive. In the US, inter-generational poverty is at its highest and education is the biggest disrupter. We (in the US) have increased our access to post-secondary education, but half of our students will drop out before receiving postsecondary credentials. About 60% of upper income students complete a degree compared to 12% of lower income students. Although education may be the pathway to possibilities, it is a pathway that is difficult for all to travel. Partnership, alliances and collaboration are a must for student success. The landscape of higher education is changing and with it the time is ripe for strategic partnerships and alliances that have not been ventured in the past. Patricia A.R. Martinez, Director for Residential Communities, Northern Illinois University, President, Association of College & University Housing Officers-International (ACUHO-I)
Outside the classroom You see a movement in the United States toward curriculums created in residential facilities focused on student learning. There is a resurgence of learning communities that partner with the academic side of the university to achieve student success in preparation for careers. Learning Outcomes and adult learning theories are now being used in residential facilities to enrich the student experience outside the classroom. The foci of learning in a residential facility mirror what employers are looking for. In the United States, large universities are building or creating small communities for students to interact and have all their needs met through tutoring centers, health service satellite offices, computer labs, counseling centers and academic advising centers all housed within the residential accommodations. The ‘one stop shop’ can exist where students are known by name and have a network of individuals able to direct and aid them in being successful as a college student. One such example exists at Michigan State University where neighborhoods were created to allow students to have the resources available of the large institution while experiencing the individualized student contact of a smaller college setting. Students of today are looking for more individualized, personal resources and programs that are specific to them. Pathway to possibilities Society sees education as the pathway to possibilities: educationally, economically, socially, and personally. However, in the quest to attain further education, costs have become
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INVESTMENT SPECIAL
European student housing goes mainstream Purpose-built student housing used to be the exclusive domain of non-profit organisations and universities. Successful private investments in the UK and the US combined with growing demand for student housing has fueled investors’ interest in continental Europe. Multiple funds have been established to invest directly in European student housing and institutional investors are set to enter the market. How attractive is the European market in the short and long run? Who are these new investors? Why has it taken them so long compared to the UK and the US? Which cities are they looking to invest in? What can and should European cities and universities do to attract private investors? This special section highlights recent market developments and takes a closer look at emerging European student housing markets.
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This investment special was produced in cooperation with our real estate media partner PropertyEU, the leading source of information on the commercial real estate industry in Europe. See www.propertyeu.info for more information.
The Class of 2020 is supported by institutional partners, investors, student housing providers, and media partners. Please join us in 2014!
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JOIN THE CLASS OF 2020! The Class of 2020 is an Amsterdam-based non-profit foundation established with a simple goal: to further the professionalism and knowledge of student housing in Europe and beyond. We sponsor research and organize events such as lectures, workshops and an annual conference. In an annual publication we publish the latest trends and market developments. Increase your expertise, broaden your network and meet the leading players of the industry by supporting the Class of 2020 as a partner, supporter, sponsor or friend. Interested in the possibilities? Contact info@classof2020.nl for more information.