Student housing: sustainability strategies for a fast-growing asset

Student housing takes third place as an asset “to watch” in the research ranking released by the Urban Land Institute for the Emerging Trends in the Real Estate Market for 2025. It is rapidly moving up the rankings -from 15th in 2022 to third in 2025- becoming an attractive sector for investors and developers, expecting remarkable financial returns. It is an area of interest for institutions as well: according to the “Riforma 1.7, Missione 4, Componente 1 del Piano Nazionale di Ripresa e Resilienza (PNRR)” 60.000 beds are to be created for off-campus university students by 30 June 2026, through direct financial support.

Student housing design should be community-oriented and adapted to the contemporary lifestyle of its residents. As tenants’ needs evolve, it is crucial to integrate social sustainability aspects into the project. The aim is to create the best possible experience for students by satisfying a growing demand. According to data from the MUR (Ministero dell’Università e della Ricerca), there were over 7,000 more university enrollments in Italy in the academic year 2022-2023 -compared to 2021-2022 –, which stands for an increase of 2.2%.

Citing the report "Student Housing from niche market to mature sector" by Scenari Immobiliari and Re.Uni presented in 2024 counted over 85,000 student beds in Italy: this number would increase over the next years to over 100,000 units by 2027. The university accommodation currently available in Italy does not meet the growing demand due to increasing enrolments. Taking Turin as an example, there were approximately 7.200 beds available in 2024 for about 44.500 students living in the city -based on a Torino Corriere’s article-. These data validate the student housing sector as a fast-developing asset for investors and developers.

The growing demand is driving increased interest in the asset, which must meet sustainability standards required by the property market to maintain and enhance its value.

Selecting the most effective, and cost-effective, approach to integrate ESG principles in building design, construction, and maintenance can be challenging. Navigating the complexity of regulations and directives is crucial to optimizing measures from both sustainability and economic perspectives. Here is an overview of the two most widespread international sustainable building certifications: LEED and BREEAM. These protocols provide standards to be followed to achieve the desired results.

LEED vs BREEAM in student housing projects

Sustainability plays a crucial role in Student Housing design and construction given the connection between environmental performance and the allocation of funds for green investments. Integrating performance assessment and reporting tools such as LEED, BREEAM, and the European Regulation on the Sustainable Buildings’ Taxonomy in business practices plays a key role in this process.

LEED and BREEAM are:

• Third-party audited certification protocols;
• Recognized by GRESB ;
• An environmental performance demonstration for the assessments required by certain investors.

The European Taxonomy Regulation represents a regional guide adopted for the allocation of funds by economic operators such as credit institutions, which can release dedicated financial products based on conformity assessments.

The European Taxonomy Regulation is becoming a constant among real estate operators while selecting a sustainability certification protocol may require more technical considerations.

• BREEAM acknowledges the relevance of national laws and regulations in ensuring compliance and evaluating performance in its current Italian application. This occurs for the assessment of energy performance -according to current legislation and regulations- and for the definition of ventilation requirements -natural or mechanical-. Furthermore, it includes a significant focus on site management, requiring inclusive, energy and water-efficient fit-outs, as well as wood-certified setups and installations.
• LEED is mainly focused on the application of the ASHRAE standards for energy efficiency, ventilation, and thermo-hygrometric comfort, although some European exceptions are admitted. The certification includes dynamic thermal-energy modeling, which allows a more accurate optimization study and forecasting of potential in-use consumption. Moreover, it mainly focuses on the physical impacts of the construction site on the outside world and the performance of materials for construction activities.

BREEAM and LEED are both efficient tools to align operations with the European Taxonomy Regulation, providing a coherent framework on the principles of environmental sustainability. Choosing one protocol over another should be made considering the project demands. An example: projects that do not include mechanical ventilation in all rooms in the budget may select BREEAM, as it is less stringent in this regard. GET team’s expertise aims to guide Clients on this journey, helping them identify the best option in terms of efficiency and performance.

GET as a sustainable consultant for student housing projects

Student Housing, an asset that reflects the needs of a contemporary way of living, can often be part of larger urban regeneration plans. This is the case of MIND Milano Innovation District : a mixed-use development project that will rise in the ex-EXPO 2015 area. An urban district where sustainability and social inclusion are the key drivers.

Student residences are a leading asset class for the MIND project and REAM SGR SpA and the Fund Cervino – Comparto B chose GET as a sustainable consultant for two student housing projects, which plan to create around 1100 new beds. The design will pursue high sustainable standards to be achieved through high energy efficiency, reduction in embodied carbon, efficient use of water resources, and more.

GET is active in 5 student housing projects across Italy in the cities of Milan, Bologna, and Rome. We support multiple stakeholders in achieving optimal strategic results for their sustainability goals and complying with the requirements of the European Taxonomy Regulation with our consultancy services.

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