Investment Potential For Dubai Student accommodation

Research commissioned by ENBD REIT (CEIC) Limited (‘ENBD REIT’), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the ‘Fund Manager), and conducted by GSA, a leading international provider of purpose-built student accommodation based in Dubai, has found that Dubai’s market is ripe for investment in an emerging student accommodation asset class. Dubai has grown rapidly as a hub for private higher education, with rising enrolments increasing demand for accommodation facilities.

In the last 12 years, the United Arab Emirates has established five public and 58 private institutions with over 100,000 total student enrolments. The rapid growth in educational institutions is a direct response to growing demand for higher education in the region, with many students enrolling from overseas.

More recently, enrolments in Dubai have since 2009 increased at an annual growth rate of 6.4% to over 60,000 students currently studying in the city. This rate of growth is almost double the international average (3.7% p.a.) over the same period. The Emirate’s rapidly growing higher education market is supported by continued population growth, its relative geographical proximity to many overseas students and strong government support for the sector.