According to research from Savills, there has been a substantial increase in the number of property investors acquiring student housing assets in mainland Europe.
In total deals worth a combined $1.4bn were executed in Q2 2016 an increase of 21% year-on-year.
The UK and US still dominate the market in terms of the volume of investment received. In the first half of the year the UK received $1.4bn and the US $5.4bn.
As of the end of the second quarter of 2016, investment volumes of existing student housing stock grew by 82% in the US, but declined by 64% in the UK, returning to their medium-term average after an exceptionally high 2015, driven by the acquisition of a few large portfolios.
Marcus Roberts, director of student investment and development at Savills, said: "The US and UK student housing markets have dominated global investment in the last three years, but with the maturing of these markets investors are looking to other areas which are suffering from a pressured housing supply, shortage of student accommodation and immature management solutions."
In particular, EUR 350m was invested into German student housing in the first seven months of 2016, more than double the total amount invested in the country's student housing market for the whole of 2015.
Cross-border investment also continues to grow, with 40% of all deals originating from outside the country. This has been attributed to investors seeking to diversify portfolios, with large outflows from the US, Canada and Singapore heading into the UK and continental European markets.