However, success in this sector is far from guaranteed. The increasing professionalisation of PBSA gives those with deep experience a unique advantage. Those who misjudge local dynamics, underestimate planning hurdles, or fail to deliver a best-in-class operational experience will quickly fall behind. The question isn’t whether capital is still flowing, but where the next opportunities lie. 

Market dynamics show conflicting pressures but strong fundamentals 

PBSA investment is currently shaped by two opposing forces. On one hand, planning complexities, new building safety regulations, inflation, and higher capital costs have made development viability more challenging. On the other, persistent demand and a shortage of quality stock have strengthened the sector’s long-term investment case. Universities are struggling to house growing student populations, while construction delays due to material cost inflation, labour shortages and new regulations, have further widened the supply gap. As a result, PBSA rental growth continues to outperform many other real estate sectors, reinforcing its reputation as a defensive, high-yielding asset class.

Read the full ‘Thought Leadership’ article at the link below