Student Accommodation

Transcription

1 Student Accommodation Lisney 2018 Our View

2 OVERVIEW 2018 is set to be a busy year for the Purpose Built Student Accommodation a sector with close to 18,000 bed spaces at various stages of planning and construction nationally at the start of the year. Above Binary Hub, bedroom and kitchen, Dublin 8 (Courtesy of Hines) 18,000 bed spaces at various stages of planning and construction nationally at the start of the year. This follows on from 2017 when Dublin and Cork saw significant levels of activity with about 5,400 new bed spaces completed. In July 2017, the government launched the National Student Accommodation Strategy n a as part of Rebuilding Ireland. The aim of this is to increase the supply of a and complement the various actions being taken through Rebuilding Ireland to address the housing crisis. Through the Strategic Housing Development initiative (i.e. fast-track planning, also introduced last July), new schemes with more than 200 bed spaces can apply directly to An Bord Pleanála for permission. This is a positive step and will help in speeding up the supply of accommodation. has already utilised this by applying for 3,006 bed spaces to be developed over a 10 year period. A decision is due in mid-january. Student Accommodation

3 SUPPLY AND DEMAND At the start of 2018, there was a stock of just over 34,300 student bed spaces across Ireland. This falls significantly short of the estimated demand for beds of over 57,000. The imbalance is most acute in Dublin, Cork and Galway. Above Dorset Point, Dorset St., Dublin 1, exterior and gym (Courtesy of Hines) The table opposite shows the current and future mismatch between demand and supply as forecast by the government. Focusing on Dublin and Cork, the current deficit is 16,975 and 1,698 bed spaces respectively. However, the pipeline for 2018 and subsequent years is strong, as can be seen opposite. It is evident that the majority of immediate future supply in Dublin will be in D1, D7 and D8 while in Cork, it will mainly be in the south central area. Below Student accommodation, supply and demand mismatch DUBLIN CORK GALWAY LIMERICK OTHER AREAS NATIONALLY SUPPLY ,323 3,788 3,230 6,816 7,175 34,332 DEMAND ,298 5,486 5,491 7,724 8,076 57,075 EXCESS DEMAND 16,975 1,698 2, ,743 SUPPLY ,142 4,352 3,887 6,831 7,475 40,687 DEMAND ,913 6,463 6,093 9,000 8,972 66,441 EXCESS DEMAND 17,771 2,111 2,206 2,169 1,497 25,754 SUPPLY ,806 5,490 4,702 8,181 7,475 54,654 DEMAND ,375 7,391 6,652 9,798 9,424 75,640 EXCESS DEMAND 13,569 1,901 1,950 1,617 1,949 20,986 Source National Student Accommodation Strategy, Department of Education and Skills, Rebuilding Ireland, Lisney Lisney 2018 Our View

4 Opposite Student accommodation, Dublin pipeline STATUS BED SPACES UNDER CONSTRUCTION 4, PLANNING PERMISSION GRANTED 3, IN PLANNING 4,368 8 NO. SCHEMES DUBLIN DRUMCONDRA PHIBSBOROUGH BROADSTONE STONEYBATTER IFSC 4 NORTH STRAND EAST WALL POINT VILLAGE 970 PRE-PLANNING 5,881 6 R I V E R L I F F E Y 36 12,438 TEMPLE BAR Source Lisney, Construction Information Services STELLA GARDENS RIALTO 31 THE LIBERTIES , PORTOBELLO RANELAGH BALLSBRIDGE Opposite Student accommodation, Cork pipeline STATUS BED SPACES NO. SCHEMES CORK BALLYMACTHOMAS ST LUKE S UNDER CONSTRUCTION PLANNING PERMISSION GRANTED 1,593 6 ARD SIONNACH IN PLANNING PRE-PLANNING 0 0 C A R R I G R O H A N E R D. 484 R I V E R L E E WELLINGTON BRIDGE CLARKE S BRIDGE , UNIVERSITY COLLEGE CORK Source Lisney, Construction Information Services G L A S H E E N R D DEERPARK R CORK LOUGH Below Dorset Point, Dublin 1, kitchen (Courtesy of Hines) Dublin currently has 13 pbsa developments actively under construction and an additional 25 with planning permission. Cork has 2 pbsa schemes under construction and 6 where planning permission has been granted. It is expected therefore that Dublin will see in excess of 4,500 bed spaces being provided in the next 12 to 24 months and a further 500 to 750 bed spaces in Cork. Student Accommodation

5 RENTS Lisney has been tracking Dublin a rents since Over that period, academic year rents have increased by approximately 29% (both on-campus and off-campus). Above Dorset Point, Dublin 1, common area, basketball court and bedroom Rents will likely continue on this upward trend in the next number of years as the market matures. This is broadly in line with the growth in rents of Dublin apartments generally, at 27%. From the pbsa schemes we have reviewed (close to 40), rents for the 2017/2018 academic year range from 5,000 per bed space (mainly older, on-campus properties) to over 10,000 / 11,000 in some situations. In Cork, rents for the current academic term (26 schemes reviewed) range from 3,300 to 7,950. For the upcoming 2018/2019 academic year, we believe that rents will rise further due to the significant demand. Rents will likely continue on this upward trend in the next number of years as the market matures. However, in the mediumterm, affordability will come more into question (as it is in the UK at present) and as supply increases, there will be a greater divergence between top quality and older stock. Based on research in the UK, the location of the scheme will continually decline in importance and the amenities provided by schemes will become more important to students. This will impact on achievable rents. Lisney 2018 Our View

6 Return to report Download full report Head Office St. Stephen s Green House, Earlsfort Terrace, Dublin 2, D02 PH42 T E dublin@lisney.com Cork 1 South Mall, Cork, T12 CCN3 T E cork@lisney.com Belfast Montgomery House, Montgomery St. Belfast, BT1 4NX T E belfast@lisney.com London 33 Cavendish Square, Marylebone, London, UK, W1G OPW T E london@lisney.com Dundrum 11 Main Street, Dundrum, Dublin 14, D14 Y2N6 T E dundrum@lisney.com Dun Laoghaire 106 Lower George s Street, Dun Laoghaire, Co Dublin, A96 CK70 T E dl@lisney.com Howth Road 171 Howth Road, Dublin 3, D03 EF66 T E howthroad@lisney.com Leeson Street 103 Upper Leeson Street, Dublin 4, D04 TN84 T E 103@lisney.com Terenure Terenure Cross, Dublin 6W, D6W P589 T E terenure@lisney.com LISNEY.COM