Foreign, mainland students flock to Hong Kong sparking property demand in education sector

Hong Kong's push to become a global education center is poised to fuel property demand in the sector, with the city projected to host around 200,000 non-local students by 2035, according to CBRE analysis. International schools are expected to need significant additional real estate to accommodate 30,000 to 40,000 non-local pupils, potentially adding up to 1.11 million square meters of gross floor area.

University expansion is also anticipated, with universities potentially increasing academic space by 1.39 million to 2.14 million square meters. Currently, Hong Kong's 12 degree-granting institutions occupy approximately 4 million square meters of gross floor area. The student accommodation sector would also require over 70,000 additional beds to house these students in about a decade.

Marcos Chan, executive director and head of research at CBRE Hong Kong, noted that "Hong Kong's education sector is undergoing a structural transformation." The city's government has launched initiatives to attract more international students and lure wealthy immigrants to support this growth. Mainland Chinese students are expected to be the primary source of new students, as geopolitical concerns deter Western study destinations.

Hong Kong's universities have consistently ranked among the top globally, with five in the QS World University Rankings for 2027 and five in the Times Higher Education Asia University Rankings for 2026. Investment interest in the education sector has surged as investors recognize the potential impact on Hong Kong's real estate market, particularly retail podiums favored by international schools seeking space.