Share

Africa's growing demand for student housing

(Shutterstock)
(Shutterstock)
Cape Town - Johannesburg's inner city growth node is undergoing revitalisation and experiences a high demand for student accommodation from those attending Wits University, Johannesburg University and other educational institutions in the area,according to Thea Bezuidenhout, managing director of JHI Residential.

She said it is a specialised business to manage student accommodation and understand students' needs.

JHI Residential already manages a portfolio of ten buildings comprising approximately 450 flats (with around 2 000 beds) for the StudentDigz portfolio in Braamfontein, Johannesburg.

A number of these buildings have been renovated and refurbished.

A new cluster development, Emona Student Residence in Windhoek, Namibia, which will cater for the burgeoning demand for such accommodation, is an example of the growing demand for student accommodation in Africa, according to Bezuidenhout.

Initially, in the first phase of the Emona Student Residence, JHI will be managing 1 152 beds, which will increase to a total of 3 000 beds in additional phases.

The landlord is Hanganeni Emona - a consortium consisting of Hanganeni Investment Holdings and CSV Construction Namibia.

They plan to further expand accommodation for students in Namibia and possibly other countries in Africa.

“With a national student population currently close to 13 000, the University of Namibia has a strong demand for accommodation, which offers further potential for the growth of our business," said Bezuidenhout.

"We see this as a stepping stone to significantly increasing our presence in Africa, and are currently in negotiations regarding further management contracts for student accommodation in Zambia and Botswana.”

New fund

The dearth of quality, affordable student housing close to places of higher learning is driving a wave of investment in this niche accommodation sector.

International Housing Solutions (IHS), a global equity investor in affordable housing, IHS recently launched its second fund, IHS Fund II, in the wake of the success of its first fund, the SA Workforce Housing Fund, which enabled the large-scale development of affordable housing in South Africa.

According to the Department of Higher Education’s Ministerial Review of SA University accommodation, less than 10% of first-year students can be accommodated.

The latest statistics further show a shortfall of 207 800 university beds, and that does not include the shortfall of accommodation for private tertiary institutions.

About 400 000 students are currently enrolled at FET colleges, the vast majority of which do not have any on-campus accommodation.

“The lack of adequate and affordable student housing results in students renting inadequate accommodation off-campus, in locations that are often in appalling condition and overcrowded,” said IHS Managing Partner Rob Wesselo.

“Of great concern, is the fact that the poor living conditions of students have been linked to our country’s high drop-out and failure rate, due to these conditions not being conducive to studying and good health.”

And he said that, as government funding for studies through the NSFAS (National Student Financial Aid Scheme) drives the growth in the student population, the demand for accommodation increases dramatically.

“Through our first fund, the SA Workforce Housing Fund, we have already made available 2184 opportunities in quality student developments,” said Weselo.

"Although student housing offers excellent investment opportunities, it must however be approached via a sound strategy to mitigate any sector-specific challenges."

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders