With South Africa facing a critical shortage in student housing, the need for innovative property development has never been more urgent. Beyond meeting demand, student accommodation is unlocking new opportunities—for investors, developers, and the youth.
From job creation to urban regeneration and skills development, this growing sector is proving to be a powerful engine for economic inclusion.
Despite global unemployment reaching a historic low of 4.9% in early 2025, youth unemployment remains a troubling global issue.
According to the International Labour Organisation (ILO), around 12% of young people aged 15 to 24 – nearly 65 million individuals – are unemployed, with women disproportionately affected.
In South Africa, the challenge is even more severe. The latest Quarterly Labour Force Survey by Statistics South Africa reports a youth unemployment rate of 46.1% in Q1 2025. For those aged 15–24, the figure climbs to 62.4%, while individuals aged 25–34 face a 40.4% rate.
These statistics reflect an economic crisis, and deeper social emergency that touches nearly every facet of young people’s lives.
The Gauteng Partnership Fund (GPF) says it is helping to alleviate some of these systemic challenges by investing in student accommodation and rental housing. The fund is designed to support entities that provide affordable, well-managed housing solutions, opening doors for youth participation in the property development sector.
With South Africa’s population now exceeding 63 million – and Gauteng alone accounting for nearly 16 million residents – demand for flexible and affordable urban housing continues to rise.
The GPF said it has responded by facilitating the development of over 20,000 homes across Johannesburg and Tshwane, contributing to the creation of approximately 130,000 job opportunities, thereby bolstering both the housing market and the broader economy.
Key student accommodation projects include:
-57 on Bok and Residence Viera in Johannesburg, delivering 378 beds near the University of Johannesburg and Wits University.
-Haborona Student Rez in Pretoria Gardens, offering 308 beds close to Tshwane University of Technology.
-Winchester Heights in Winchester Hills, adding 224 beds for students from the University of Johannesburg’s Soweto campus.
The GPF said its funding initiatives have already opened doors for developers – including historically disadvantaged individuals – to contribute meaningfully to the housing sector.
“While the goal of achieving a decreased number in youth unemployment may seem aspirational, it is certainly one that we should be striving for daily- If we work together, towards a common objective, to see such an outcome achieved,” it said.
In South Africa, the demand for student housing continues to outpace supply, creating major challenges for higher education institutions and the students they serve.
In his State of the Nation Address, President Cyril Ramaphosa highlighted the government’s efforts to address infrastructure gaps:
“Through the Infrastructure Fund, 12 blended finance projects worth nearly R38 billion have been approved in the last year. These are projects in water and sanitation, student accommodation, transport, health and energy.”
According to the International Finance Corporation, a member of the World Bank Group, the shortfall in student accommodation is expected to reach 780,000 beds by 2025.
This growing deficit underscores the critical need for investment in housing near universities and educational institutions—an opportunity increasingly attractive to investors seeking reliable yields and long-term capital growth.
The Department of Higher Education and Training (DHET), in collaboration with the National Student Financial Aid Scheme (NSFAS), is working to close the gap through partnerships with private developers and by expanding its own infrastructure initiatives.
The Development Bank of Southern Africa (DBSA), a key development finance institution, is playing an active role in helping the sector expand bed capacity.
“The department has a student housing infrastructure programme that seeks to build 300,000 beds by 2032. The programme is managed by the Development Bank of Southern Africa. It is currently in phase two of implementation. This intervention will address the supply-demand imbalances,” said Dr Marcia Socikwa, the Deputy Director-General for Universities at DHET.
Private sector involvement is also accelerating. Growthpoint Properties, South Africa’s leading REIT, has established Growthpoint Student Accommodation REIT, a dedicated vehicle for student housing investments.
The REIT had injected R1.5 billion into the sector by 2024, a mere two years after its launch, adding 4,000 new student beds and building a strong pipeline for future projects. By 2024, its portfolio was valued at R3.5 billion, spanning 12 residences with 9,000 beds across Cape Town, Johannesburg, and Pretoria. Growthpoint expected to expand its offering to 10,400 beds for the 2025 academic year, including sites in KZN.
As the student population continues to grow, bridging the accommodation gap is essential – not only to support academic success but to stimulate economic activity and urban development around learning institutions.
