Why Belgium's Affordable Education System is Fueling Student Migration—and How to Invest in the Boom

The global education landscape is undergoing a quiet revolution. Students are increasingly drawn to countries offering high-quality education at a fraction of the cost seen in traditional hubs like the U.S. or the U.K. Belgium, with its low tuition fees, multilingual environment, and affordable living costs, has emerged as a prime destination for international students. This trend is creating a golden opportunity for long-term investors in education infrastructure and student housing.

Belgium's Education Appeal: A Cost-Efficient Hub

Belgium's universities are renowned for their academic rigor and multilingual instruction, with many programs taught in English, French, or Dutch. What sets Belgium apart is its affordability: annual tuition fees for international students typically range from €800 to €1,500, far below the €30,000+ charged by U.S. institutions. This cost advantage, combined with a relatively low cost of living (Brussels's average rent is €800–€1,200 per month, compared to **€2,000+ in cities like London or Paris), has driven a steady rise in international enrollment.

According to recent forecasts, Belgium's tertiary international student inflow will grow at a 0.75% CAGR from 2024 to 2028, reaching 10.89% by the end of the period. This growth is underpinned by post-pandemic recovery in global mobility and Belgium's strategic focus on attracting talent through policies like increased work-hour allowances for students and streamlined visa processes.

Student Housing: A Stable, Low-Risk Asset Class

The surge in student numbers has created a critical demand for housing. Universities often lack the capacity to accommodate all students, and private-sector solutions like student housing REITs are stepping in to fill the gap.

Xior Student Housing, Belgium's leading student housing operator, exemplifies this opportunity. With a portfolio of 15,000 beds across Belgium, the Netherlands, and Spain, Xior specializes in high-quality, affordable accommodations near major universities. Its properties are designed to appeal to both domestic and international students, ensuring 90%+ occupancy rates even during economic downturns.

Xior's expansion into Southern Europe and its focus on sustainability (e.g., energy-efficient buildings and green leases) align with the growing emphasis on ESG investing. The company's strategy of acquiring underutilized university-owned housing and repurposing it into modern complexes also mitigates regulatory risks.

Investment Opportunities: REITs and ETFs to Watch

For investors seeking exposure to Belgium's student housing boom, Xior Student Housing is the primary vehicle. While not yet a public REIT (as of Q2 2025), the company's performance metrics suggest it could be a candidate for a future IPO or a listed fund. Until then, investors can consider:

1. European Real Estate ETFs: Funds like the iShares Global REIT ETF (SREI) provide diversified exposure to European student housing and education-related real estate. These ETFs often include exposure to companies like Xior through regional holdings.

2. Sector-Specific ETFs: The Vaneck European Student Housing ETF (if available) would be ideal, but such niche products remain scarce. Investors can instead focus on broader education infrastructure ETFs or real estate funds with a focus on non-cyclical assets.

Why Now is the Time to Invest

• Structural Demand: Belgium's education system is becoming a magnet for students from Africa, Asia, and the Middle East, where families prioritize value over prestige.
• Resilience: Student housing is a “non-cyclical” asset class, as education demand remains steady even during economic slowdowns.
• ESG Alignment: Sustainable housing solutions and policies targeting affordability resonate with ethical investors.

Risks and Considerations

• Regulatory Changes: Belgium's regional governance (Flanders, Wallonia, Brussels) could lead to inconsistent policies on housing subsidies or zoning laws.
• Supply Glut: Overbuilding in popular university towns could depress rents, though Xior's strategic focus on prime locations mitigates this risk.

Final Takeaway: A Long-Term Play with Steady Returns

Belgium's affordable education system and its strategic investments in student housing infrastructure position it as a standout market for long-term real estate and education sector investors. While direct investment in Xior may require patience until it enters public markets, exposure via European real estate ETFs offers a viable alternative. As international student numbers continue to rise, the demand for quality, cost-effective housing will remain robust—making this sector a reliable income generator for decades to come.

Act Now: Monitor developments around Xior's potential listing and consider overweighting in global REIT ETFs with European exposure. The student migration wave is here to stay, and Belgium is poised to benefit most.