THE number of student accommodation units built or under construction in Belfast since 2016 is approaching 6,000, with thousands more in the pipeline.
Deloitte’s annual Belfast Crane Survey showed 1,800 student units being actively developed in 2022 alone.
The report, which focuses on large scale development in the city, recorded 23 schemes under construction or completed in 2022.
Just two new office schemes were started in 2022, the lowest number since 2016.
Last year was dominated by the education sector following the completion of Ulster University’s new £370 million York Street campus (800,000 sq ft) and Queen’s University’s new 120,000 sq ft student centre.
Given the wide scale adoption of flexible working and the oversupply of office space in Belfast, investors appear to have turned to student accommodation.
Last month, Bywater Properties and Ashmour Developments confirmed it had scrapped plans for a major office development next to Belfast’s Smithfield Market, announcing instead that it will seek permission to build a residential student scheme.
Deloitte’s report said two new student accommodation schemes containing 400 units were started in 2022, but thousands more rooms could be added in the coming years.
Planning approval has already been granted to two large developments in the vicinity of Donegall Street, one for 795-units and the other 724-units.
The Dublin Road is also becoming a hot-bed for student accommodation. McAleer & Rushe is currently on site at a 15-storey scheme on Bruce Street. But nearby, a developer has proposed an 11-storey student accommodation scheme on the site of Filthy McNastys bar and nightclub.
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Kainos’ decision to downsize its new headquarters is also likely to see part of the former Movie House cinema site on Dublin eventually redeveloped into student accommodation.
Belfast City Council has set a target of increasing the city centre population by 66,000 by 2035.
But Deloitte’s research, which only includes schemes containing 25 units or more, has yet to detect any major increase in the development of city centre living accommodation outside student units.
The two residential schemes recorded by Deloitte during 2022, were the first new residential schemes started in the centre of Belfast since 2019.
Between them, they comprise just 86 units.
Simon Bedford, partner in real estate at Deloitte, said: “The strategic aim for increasing the residential population of the city centre continues to be a challenge and tactical steps being taken alongside the increasing city centre student population will hopefully move Belfast closer to unlocking this potential.”
Colin Mounstephen, director at Deloitte in Belfast, said while the completion of Ulster University’s campus took longer than anticipated, he said it had “released a new regeneration dynamic in Belfast”.
“Since 2016, almost 6,000 student accommodation rooms have been constructed, or are under construction, across Belfast and are driving the population of the city centre," he said.
“This is already having a positive impact on the regeneration of parts of the city and has the potential to do even more.”
