Hong Kong’s education sector is poised to drive significant real estate demand, with projections indicating a need for over 70,000 additional student accommodation beds by 2035. This growth, fueled by rising non-local enrollment, is expected to bolster the city’s position as an international education hub.
A CBRE report, titled Smart Growth: The Education Sector as a New Catalyst for Real Estate Demand, forecasts that Hong Kong could welcome 30,000 to 40,000 new international school students in the next decade. This influx would require the development of 40 to 50 new international school campuses.
At the tertiary level, student numbers are expected to rise by around 150,000 by 2035. CBRE estimates this will necessitate an additional 15 to 23 million square feet of academic space, in addition to the 70,000 accommodation beds.
The growth is primarily driven by non-local students, especially from Mainland China. Hong Kong’s renowned universities, strategic location, multilingual environment, and post-graduation opportunities are key attractions for international students.
Marcos Chan, executive director and head of research at CBRE Hong Kong, characterized the sector’s changes as a “structural transformation.” He highlighted the increasing connection between education demand, non-local students, talent migration, and Hong Kong’s global reputation.
Educational institutions are already expanding beyond traditional campuses, acquiring and leasing offices, retail spaces, and hotels.
This trend creates opportunities across various property types. Frederick Lai, senior director of capital markets at CBRE Hong Kong, proposed that investors and landlords could adapt underutilized hotels, offices, and commercial properties for educational purposes, such as student housing and satellite campuses.
Education-related real estate is projected to provide long lease terms, consistent occupancy, and strong demand. The expected accommodation shortage and growing need for academic space may encourage conversions and asset repositioning.
To address the anticipated demand, collaboration among the government, educational institutions, landlords, and investors will be vital as Hong Kong aims to strengthen its status as a regional education hub.
