Foreign, mainland students flock to Hong Kong sparking property demand in education sector
Hong Kong’s bid to become a global education hub is likely to transform the sector as a sustainable source of property demand, with the city tipped to see around 200,000 non-local students by 2035, according to CBRE. The city’s international schools are estimated to require enormous additional real estate to accommodate nearly 30,000 to 40,000 non-local students, as the institutions would need to…
Hong Kong's ambition to become a leading education destination is expected to generate significant demand in the city's property market. By 2035, around 200,000 non-local students are anticipated to enroll in the city's international schools, requiring the construction of 40 to 50 additional campuses, which could add up to 1.11 million square meters of gross floor area.
At the tertiary level, 150,000 students are projected to join Hong Kong's universities, leading to a need for 1.39 million to 2.14 million square meters of expanded academic space. Currently, Hong Kong's 12 universities occupy approximately 4 million square meters of gross floor area. Additionally, the student accommodation sector will require over 70,000 new beds within a decade.
Marcos Chan, executive director and head of research at CBRE Hong Kong, emphasized that education demand is shifting from local demographics to non-local students, talent migration, and the city's status as an international education hub. The Hong Kong government is actively promoting this sector through initiatives to attract international students and programs to attract wealthy immigrants and professionals, many of whom bring dependents, including school-aged children.
Mainland Chinese students are expected to be the primary source of new students, driven by geopolitical concerns regarding studying abroad and Hong Kong's universities' strong performance in global rankings. CBRE reported that 49,000 square meters of new spaces were leased by education groups and property acquisitions worth HK$845 million during the first half of 2025.
The future requirements of the education sector present a significant investment opportunity, with many retail malls struggling due to a narrow-based recovery in the retail sector. Investors are showing keen interest in Hong Kong's property assets, including those from overseas, as the education sector continues to drive demand for real estate.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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