Key Takeaways :

• Rising student demand, especially in second-tier cities, is outpacing PBSA supply

• Public-private collaboration is essential to unlock housing development

• Legal and regulatory ambiguity continues to hinder market scalability

• Investment is growing, but requires clearer incentives and policy alignment

• Student wellbeing and experience must guide design, delivery, and governance

Data & Legal Foundations: The Case for Action

The first panel discussion offered a layered examination of the Italian PBSA market, drawing on insights from Studyportals, JLL, and Osborne Clarke. It began with a presentation from Studyportals, which highlighted the rising demand for Italy as a study destination, particularly in second-tier cities such as Padua, Pavia, and Parma. These cities are experiencing notable increases in student interest, especially for English-taught programmes, yet lack sufficient PBSA capacity, signalling a mismatch between where students want to go and where housing is currently available.

Building on this demand-side view, JLL provided a real estate and investment perspective. In 2024, Italy recorded €320 million in PBSA investment, a 229% increase over the five-year average, indicating a strong shift in market momentum. However, this surge in capital has yet to close the widening supply gap. With only 104,000 PBSA beds projected against a future demand of 660,000 mobile and international students by 2030, the country faces an unmet need of approximately 440,000 beds. JLL emphasized the urgency of accelerating delivery and directing investment to underserved urban markets.

Concluding the panel, legal experts from Osborn Clarke addressed the structural barriers that constrain PBSA growth. Italy’s current regulatory environment was described as fragmented and outdated, with zoning and cadastral classifications that often miscategorize PBSA under residential, hospitality, or public-use categories. This legal ambiguity complicates planning approvals, undermines investor confidence, and ultimately delays projects. The discussion reinforced the need for regulatory reform, such as flexible lease models, zoning waivers, and clearer tax policies, to unlock development and ensure that investment translates into tangible student-focused housing outcomes.

Investment Insights: Unlocking Capital through Coordination

The investment-focused panel highlighted the cautious optimism surrounding Italy’s emerging PBSA market, underscoring the factors that could determine its long-term stability and growth. Speakers stressed the importance of strategic location choices in cities with consistent student demand, yet minimal market saturation, conditions that allow for steady returns and sustainable growth. Given the nascent nature of the Italian PBSA sector, the panel underscored the value of strong local partnerships, which help investors navigate complex administrative processes and better adapt global models to the local context. Additionally, ESG-aligned investments were also discussed as an increasingly attractive avenue, not only for aligning with global investor standards but also for reinforcing student wellbeing through more sustainable, community-focused developments. However, the discussion made clear that regulatory fragmentation and approval uncertainty remain persistent barriers. Simplifying these processes and improving design functionality were seen as essential steps to encourage scale and predictability. Ultimately, the conversation reinforced that the overall attractiveness of the Italian PBSA market depends on clear governance, reduced bureaucratic friction, and a shared commitment to building high-quality, student-oriented housing environments.

Public Sector & PPPs: Enabling Frameworks for Scalable Development

The final panel explored the creation of a National Action Framework (NAF), underscoring the necessity of structured collaboration between public institutions and private investors to effectively address Italy’s persistent student housing shortage. At the centre of this conversation was the strategic use of Public-Private Partnerships (PPPs) as a mechanism to unlock underutilised public assets and accelerate the development of high-quality, student-focused housing. Examples such as the Ministry of Defense’s tender for redeveloping 33 real estate sites demonstrated how aligned incentives and clear governance can enable scalable solutions. Crucially, the discussion pointed out that communes, particularly those with strong planning capacity, like Milan, are well-positioned to prioritise and fast-track PPP-led projects. Their administrative agility and proactive urban strategies make them natural incubators for innovative PBSA initiatives, highlighting the vital role of municipal leadership in implementing the NAF.

The conversation then expanded to the broader national context, where structural regulatory bottlenecks continue to hamper progress. Cases from cities like Padua and Verona illustrated how local reforms and streamlined approval processes can enable more agile urban regeneration, yet these remain the exception rather than the rule. Italy’s regulatory environment, still fragmented and overly complex, is not conducive to the scale and speed required to close the significant student housing gap.

To overcome these challenges, panellists called for comprehensive reforms at the national level. This included the more flexible application of PNRR funds, clear and consistent policy guidelines, and pragmatic timelines that align with both public procedures and market dynamics. These reforms were framed not as aspirational ideals, but as necessary enablers to create a well-functioning PBSA market.

In conclusion, the panel made clear that the convoluted and opaque nature of Italy’s current regulatory and tax norms is precisely why a National Action Framework is needed. By establishing regulatory clarity, incentivising partnerships, and sustaining public-private dialogue, the NAF can address the systemic barriers that have historically impeded PBSA development. These measures are not optional—they are foundational to unlocking investment, accelerating project delivery, and building a student housing ecosystem that is inclusive, responsive, and fit for the future.

Conclusion & Next Steps

The Student Living Forum Italy revealed both the urgency and opportunity in reshaping the student housing ecosystem. Stakeholders across sectors aligned on the importance of coordinated action, with the National Action Framework emerging as a critical tool to bring structure, speed, and clarity to PBSA development. Going forward, attention must focus on enabling reform through simplified regulation, incentivised partnerships, and integrated planning strategies—all rooted in a shared commitment to student wellbeing. Sustained engagement, open dialogue, and shared accountability will be essential to ensure the sector evolves in line with student needs and national priorities.

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