Australia to face increased competition from Europe for overseas students: Savills

English-speaking countries like the UK, US and Australia will take the lion’s share of the international student market but will face increased competition from European institutions, according to recent research from Savills.

The firm's latest World Student Housing Spotlight says that as the world's student population becomes increasingly mobile and education becomes globalised, international student populations will continue to rise.

Australia had largest proportion of of international students compared to domestic students within a country, with 26% of all students coming from overseas.

European institutions are actively trying to increase their international appeal, according to Savills. A large part of this appeal has been the increase of courses taught in English. 

English is an important language in the international business space, particularly with prospective employers, therefore tuition in this language has carried significant weight with prospective students.

"Attracting international students is important to a city's local economy as well as the bottom line and diversity of a university," the report said.

"These students often pay higher fees, spend more on both accommodation and living, and bring new insights and cultural perspectives to a country.

"The first case study of the success of this tactic came from the Netherlands, who were one of the earliest European countries to move towards English language tuition at scale."

The Netherlands now boasts the largest numbers of enrolled students on English taught programs (ETPs) making up 7.2% of their total student body, the report said.

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"In Denmark, while they don't have as large a number of students enrolled in ETPs, the students that are enrolled make up 12.4% of the total student body," the report said.

"Germany, on the other hand, while they have a large number of international students overall, do not have nearly as many of them studying ETPs, and those that do make up just 1% of their total student population.

"With considerably lower living costs than their counterparts in the US, UK and Australia, and many universities appearing in top global rankings, European institutions are a very attractive proposition for international students."

Savills said this rise in the international student market is creating opportunities for housing developers.

"A growing, internationally-mobile student population has fuelled demand for purpose-built student accommodation across the world.

"Investors may do well to watch for countries and cities that benefit from a diverse international demand base, or particular fast-growing outbound markets."