SEOUL – The surge in international students in South Korea is attracting significant interest from global property investors, particularly in the area of student housing. A shortage of university dormitories and high rental deposits are driving demand for professionally managed accommodation in Seoul, according to global real estate consultancy Cushman & Wakefield.
As of April 2026, approximately 62,900 international degree students were enrolled at universities in Seoul, marking an 11 percent increase in foreign undergraduate enrollment compared to the previous year. However, university dormitories can only accommodate around 6,700 students, which translates to roughly 11 percent of the total international student population. This leaves approximately 56,200 students to navigate the private rental market for housing.
Josh Rose-Nokes, head of Asia Pacific living research at Cushman & Wakefield, highlighted the opportunity for purpose-built student accommodation in this largely untapped market. He noted that even a modest increase in supply could be absorbed given the current limitations in accommodation options. “Current provision is very limited,” Rose-Nokes stated in a recent email interview.
He anticipates sustained demand for student housing, particularly as more students from Asia look for educational opportunities closer to home, amid tighter visa regulations in traditional study destinations like the US and UK. The current rental landscape, which heavily relies on the jeonse system, presents challenges for international students who are often unacquainted with local market norms.
“For a student arriving from overseas, avoiding tying up a large amount of cash may be highly appealing,” Rose-Nokes explained. Although professionally managed student housing may charge higher monthly rents, the option of smaller deposits and bundled services makes it competitive with traditional rentals.
Market analysis indicates that studios with lower deposits and all-inclusive pricing can command rents approximately 20 percent higher than typical properties, while maintaining comparable annual housing costs for students.
Major global investors, including Invesco, Hines, Morgan Stanley, and Nuveen, are actively looking at this emerging market. Rose-Nokes pointed out that institutional ownership could enhance quality of housing by aligning financial performance with occupancy and tenant satisfaction. “Every empty room or lost tenant impacts the net operating income,” he noted.
However, the influx of international investment firms has raised concerns about housing affordability and competition with local renters, which is a sensitive issue in South Korea. Rose-Nokes emphasized that these investors must demonstrate their role in expanding housing supply rather than simply acquiring existing properties.
He advised that adherence to clear regulatory standards and commitments to housing quality could facilitate public acceptance. “Investors willing to accept clear standards in return for a clear framework are likely to find public acceptance easier to secure,” he said, stressing the importance of framing professional operators as housing suppliers rather than speculators.
