In the latest instalment of our Capitalise on the Future series, Josh Arnold and Mhairi Thomson take a deep dive into the evolving landscape of the UK higher education sector. They examine the sector’s current demand drivers and options facing universities across the UK.
UK universities remain in-demand, influencing real estate strategy
Non-EU international student numbers in the UK continues to grow, impacting strategy amongst many universities.
Demand for office space from the higher education sector climbed to decade-high levels in 2024, accountable for a 9.5% share in UK regional city take-up.
A key strategy has been the growth of satellite campuses, with regional universities establishing London sites to capitalise on growing international student demand.
From a sample of ten universities that have opened London campuses, the average growth of international students (non-EU) was 58.1% after three years, compared to 17.4% across the UK university average over the same period.
International enrolment from a sample of ten universities
Looking ahead, what options do universities face regarding their real estate portfolios?
- Expansions – the success of London campuses is likely to entice more universities to proceed with the same strategy. Repurposing out-of-favour second-hand offices can also provide opportunities for the higher education sector.
- Sale and leasebacks – capital raising whilst retaining portfolio footprint can unlock opportunities for reinvestment into other areas of the university.
- Mergers / acquisitions – can provide options for more financially exposed institutions, involving pooling resources and facilities, and boosting student reach.
Discover more from our Capitalise on the Future series.
