Hong Kong’s ambition to establish itself as a leading global education hub is expected to significantly reshape the city’s property market, with non-local student numbers projected to reach approximately 200,000 by 2035, according to a recent report by real estate consultancy CBRE.
The growing demand for international education is anticipated to require substantial additional real estate. International schools alone may need to accommodate between 30,000 and 40,000 non-local students, prompting the potential establishment of 40 to 50 new campuses and the development of up to 1.11 million square metres of gross floor area. At the tertiary level, with an expected influx of 150,000 students, universities might expand their academic spaces by between 1.39 million and 2.14 million square metres, supplementing the current footprint of roughly 4 million square metres occupied by the city’s 12 degree-awarding institutions.
Student housing is also set for considerable growth, with over 70,000 additional beds required within the next decade to accommodate the increasing student population. Marcos Chan, executive director and head of research at CBRE Hong Kong, described the transformation as structural, highlighting a shift from demand primarily driven by local demographics to growth fueled by international students, talent migration, and Hong Kong’s elevated status as an education destination.
This transformation is supported by government initiatives launched in 2024 aimed at attracting more international students, alongside measures designed to draw wealthy immigrants and professional talent, many of whom arrive with school-aged dependents. Mainland Chinese students are expected to constitute the largest group among incoming international students, influenced by geopolitical tensions that have curtailed study options in Western countries and Hong Kong’s strong showing in global university rankings.
Five Hong Kong universities featured in the QS World University Rankings for 2027, with the University of Hong Kong and the Chinese University of Hong Kong both ranked among the global top 20. Regionally, the city has five universities within the top 10 of the QS Asia rankings. Additionally, eight institutions appeared in the Times Higher Education Asia University Rankings for 2026, with five placing in the top 20.
From January 2022 through August 2023, CBRE recorded about 49,000 square metres of new space leased by education organizations and property acquisitions totaling HK$845 million. During this period, approximately 4,500 new student bedrooms became available, adding to an existing stock of 9,500.
For investors, the educational sector’s expanding real estate needs represent a significant opportunity, especially as retail property—a traditional investment category—continues to face a slow recovery. Retail podiums, typically found in the lower floors of residential buildings, have become particularly attractive since regulations prohibit the use of high-rise buildings for academic facilities serving school-aged children. International schools have increasingly been purchasing or leasing such podiums to meet their growing space demands.
Frederick Lai, senior director for capital markets at CBRE, noted particularly strong interest from both existing schools and new entrants, estimating at least 500,000 square feet of space demand in the city. This surge in educational real estate requirements is driving intensified investor activity, including from overseas parties, emphasizing education’s emerging role as a key long-term driver in Hong Kong’s property market.