CBRE: Education Sector Emerging as a Major New Driver of Hong Kong Real Estate Demand

CBRE today released its latest research report, Smart Growth: The Education Sector as a New Catalyst for Real Estate Demand, which highlights how Hong Kong's positioning to become a leading international education hub is creating a new and sustainable source of real estate demand. Driven by rising inflows of non-local students, supportive government policies and growing demand for international education, the city is expected to require significant new education-related infrastructure over the coming decade.

According to the report, Hong Kong could see an additional 30,000 to 40,000 international school students by 2035, requiring approximately 40 to 50 new school campuses. At the tertiary level, total student demand is projected to increase by approximately 150,000 students by 2035, generating demand for 15 to 23 million sq. ft. of additional academic space and over 70,000 additional student accommodation beds.

The report finds that demand growth is increasingly being driven by non-local students, particularly those from Mainland China, attracted by Hong Kong's globally recognised universities, strategic location, multilingual environment and favourable post-graduation career and immigration pathways.

Education becoming a structural real estate demand driver

Recent years have already seen universities and educational institutions expand beyond traditional campuses through acquisitions and leasing activity across office buildings, retail podiums and hotel properties. As demand continues to grow, CBRE expects adaptive reuse of existing assets to play a critical role in addressing future education-related space requirements.

Marcos Chan, Executive Director and Head of Research, CBRE Hong Kong, said: "Hong Kong's education sector is undergoing a structural transformation. Historically, education demand was closely linked to local demographics, but future growth will increasingly be driven by non-local students, talent migration and the city's position as an international education hub. We believe this trend will establish education as one of the most important long-term demand drivers for Hong Kong real estate, creating sustained requirements for campuses, academic facilities and student accommodation.”

Investment opportunities emerging across multiple asset classes

The report provides real estate guidance for school operators and identifies opportunities for investors and landlords to reposition underutilised office buildings, hotels and retail assets for educational uses, particularly student accommodation and satellite university campuses. Education-linked real estate is expected to benefit from long lease terms, stable occupancy and strong underlying demand fundamentals.

Frederick Lai, Senior Director, Capital Markets, CBRE Hong Kong, said: "Education-related real estate is evolving into an increasingly attractive investment theme. For investors, the sector offers a combination of income resilience, long-term growth potential and multiple exit strategies. With the projected shortfall in student accommodation and the increasing space requirements of educational institutions, we expect strong interest in asset repositioning opportunities, particularly conversions of hotels, office buildings and other underutilised commercial properties."

CBRE believes that meeting future demand will require collaboration between government, educational institutions, landlords and investors. As Hong Kong continues to strengthen its role as a regional education hub, education-linked real estate is expected to become an increasingly important component of the city's evolving property landscape.

Key Report Findings

• Additional 30,000 to 40,000 international school students expected by 2035.
• Requirement for 40 to 50 new international school campuses by 2035.
• Approximately additional 150,000 tertiary students projected by 2035.
• Demand for 15 to 23 million sq. ft. of academic GFA by 2035.
• Estimated need for over 70,000 additional student accommodation beds by 2035.
• Growing opportunities for adaptive reuse of offices, hotels and retail properties for education-related purposes.