Hong Kong student accommodation demand set to top 70,000 beds by 2035

Around 30,000 to 40,000 international school students are expected over the next decade.

Hong Kong could require up to 50 new international school campuses and more than 70,000 additional student accommodation beds by 2035 as rising non-local enrolment strengthens the education sector's role as a long-term source of real estate demand, according to CBRE.

In its latest report, Smart Growth: The Education Sector as a New Catalyst for Real Estate Demand, CBRE said Hong Kong could add 30,000 to 40,000 international school students over the next decade, requiring about 40 to 50 new campuses.

At the tertiary level, total student demand is projected to rise by around 150,000 students by 2035. CBRE estimates this will generate demand for 15 million to 23 million sq ft of additional academic space, alongside more than 70,000 student accommodation beds.

The growth is expected to be driven increasingly by non-local students, particularly those from Mainland China. CBRE said Hong Kong's globally recognised universities, strategic location, multilingual environment and post-graduation career and immigration pathways are supporting its emergence as an international education hub.

Marcos Chan, executive director and head of research at CBRE Hong Kong, said the sector was undergoing a "structural transformation", with future education demand increasingly linked to non-local students, talent migration and Hong Kong's international positioning.

CBRE noted that universities and other educational institutions have already expanded beyond conventional campuses through acquisitions and leasing of offices, retail podiums and hotels. The firm expects adaptive reuse to become increasingly important in meeting future space requirements.

The shift could create opportunities across several property types. Frederick Lai, senior director, capital markets at CBRE Hong Kong, said investors and landlords could reposition underutilised hotels, offices and other commercial properties for educational uses, including student accommodation and satellite university campuses.

CBRE said education-linked real estate could offer long lease terms, stable occupancy and resilient underlying demand. Lai added that the projected accommodation shortfall and growing academic space requirements could generate strong interest in conversions and other asset repositioning strategies.

The firm said collaboration between the government, educational institutions, landlords and investors will be needed to meet the projected demand as Hong Kong develops its position as a regional education hub.