Student housing gains traction in Cyprus and Greece as safe investment choice

Student housing is gaining strong investment momentum in Cyprus and Greece amid ongoing economic uncertainty, according to the co-founders of Cyprus-based proptech startup MyStudentFlat.

In a piece of analysis released this week, Elena Orfanidou and Dimitris Oikonomou explained that during turbulent periods, investors tend to shift towards sectors offering stability, security and consistent demand, with student accommodation now firmly positioned among them.

“In periods of economic uncertainty such as the one we are currently experiencing, investors typically turn to sectors that offer stability, security, and consistent demand,” the co-founders said.

According to their analysis, student housing ranked as the third most significant asset class in European real estate in 2025, reflecting growing investor confidence.

They attributed this rise to the sector’s steady and resilient demand, which continues to expand regardless of broader economic conditions.

“Unlike other real estate assets, demand for student accommodation continues to grow steadily,” they said, linking this trend to the creation of new universities and the expansion of existing institutions.

The co-founders stressed that higher education represents a long-term life decision rather than a discretionary expense, making it less vulnerable to economic downturns.

“Students tend to complete their studies under almost any economic or social circumstances,” they said, adding that this ensures a stable and predictable tenant base.

They also highlighted the relatively low entry cost for investors as a key advantage of the sector.

Based on their experience, a modern one-bedroom apartment in university areas of Nicosia is priced between €150,000 and €170,000, making such investments accessible to a broader range of buyers.

In addition, these properties demonstrate strong liquidity, as they can be resold easily or repurposed for alternative uses such as short-term rentals or owner occupation.

The co-founders further noted that demand is not limited exclusively to students, as such apartments also attract young couples and international professionals seeking affordable housing near city centres.

“The pool of potential tenants is broader,” they said, underlining how this diversity reinforces rental stability.

They also pointed to a structural shift in the sector, with student housing entering a new phase of maturity.

Historically, such properties were rented through fragmented arrangements by individual landlords, often without professional management or enhanced tenant services.

“Today, however, a new business model is emerging,” they said, describing a transition towards professionally managed investment products offering both investor returns and improved tenant experiences.

They identified MyStudentFlat as a leading example of this transformation, describing it as the first PropTech startup in the region specialising in student housing management.

Through its digital platform, the company provides fully furnished and equipped apartments located near major universities, with the entire rental process completed online.

“Apartments can be secured 100 per cent online; from flat selection to contract signing and rental payment,” they said, highlighting the role of technology in streamlining the process.

From an investment perspective, the co-founders emphasised that such platforms convert student housing into a product with measurable performance indicators.

Through long-term rental agreements and professional management, property owners can secure stable returns without handling day-to-day operations.

“Property owners can enjoy steady returns without having to deal with the day-to-day management of their assets,” they said.

They explained that the company leases properties directly from investors and manages all aspects, including maintenance, tenant relations and overall property administration.

The strength of this model is reflected in existing partnerships with international investors, who are currently developing four residential buildings in Nicosia comprising a total of 64 apartments.

These properties will be exclusively managed by MyStudentFlat under long-term lease agreements, demonstrating confidence in the model.

At the same time, the company is seeking collaborations with individual property owners near major universities, provided these meet strict quality standards.

Market data, they said, point to continued expansion, with demand for student accommodation rising rapidly while organised housing supply remains limited.

“The number of students seeking accommodation each year exceeds 150,000 in Greece and Cyprus,” they said, underscoring the scale of the market.

They added that investment in the sector can begin with relatively small assets, such as studio apartments near university campuses.

However, with growing institutional interest and the integration of technology, student housing is evolving into a more structured and resilient asset class.

“Student housing is evolving into a well-structured asset class, capable of withstanding crises of any kind,” the co-founders said.