fbpx
Market intelligence for international student recruitment from ICEF
19th Oct 2016

Comparing the costs of study for leading city destinations

In the course of examining world markets for student housing and housing investment, global real estate services firm Savills has arrived at an interesting analysis of relative cost of study for major cities around the world. Let’s first acknowledge that comparing costs of study is always a tricky business. Currency values never stop moving around each other, “apples-to-apples” comparisons among institutions and programmes can be elusive, and some of the sharp differences in costs between major cities and smaller towns often get smoothed out into national averages. That’s in part what makes the Savills estimates noteworthy. They are focused on larger cities, where international enrolment is often concentrated. They also look exclusively at the relative costs of purpose-built student housing (PBSH), and at the tuition costs for non-specialist STEM degree programmes (e.g., mathematics) at institutions ranked in the top tier of the QS global rankings. Savills has rendered all of those costs in a common currency – US$ – and has arrived at a summary of average monthly costs of being an international student in 23 major world cities. It finds that US cities are the most expensive, with total monthly costs approaching US$6,000, including tuition costs at ranked institutions in the range of US$3,000–US$4,000 per month and PBSH costs of up to US$1,600. As the following chart reflects, the UK holds down three of the top ten most-expensive cities on the Savills table. London appears in the number five position overall but ranked as the world’s most-expensive in terms of costs of purpose-built student housing (at an average of US$1,600 per month), slightly edging out New York City and its housing average of US$1,580 per month. monthly-cost-of-study-for-international-students-in-selected-cities Monthly cost of study for international students in selected cities. Source: Savills, The Telegraph This compares to relatively affordable cities, such as Beijing, Berlin, or Shanghai where total costs of study are closer to US$1,000 per month and student housing can be had for US$300–US$600. This significant cost differential explains in part why destinations such as Germany and China have earned an increasing share of internationally mobile students in recent years. Paul Tostevin, associate director of Savills research, agrees: “Certain cities have a clear affordability advantage, offering huge potential when it comes to attracting mobile students seeking a lower cost education. Although at the moment the majority of students are still heading to more expensive institutions we expect the trickle of students choosing value over traditional reputation to increase – particularly when so many of the universities in these cheaper cities now have the credentials to rival the old bastions of education.” Savills points out that, along with relative cost, other factors – including institutional reputation, the appeal of the city-destination and job prospects after graduation – also play a significant role in the student’s decision-making process. “Many students still choose to study in the US, UK and Australia despite the expense due to the fact that courses are taught in English and that these locations are home to many institutions that appear at top of the rankings tables,” adds Marcus Roberts, director of student investment and development at Savills. “The old order, however, is changing. With greater commercial focus, more courses taught in English, and alignment to the bachelor system, [newer destinations in Europe and Asia] are on the rise." The Savills analysis appears in the recently released Spotlight on World Student Housing 2016/17, a report that also offers considerable additional background on student housing trends and global investments in PBSH. For additional background, please see “Homeward bound: The growing global investment in student housing”.

Most Recent

  • Canadian immigration ministry releases list of college programmes eligible for post-study work permits Read More
  • International education has a data problem. It’s time to do something about it Read More
  • Criticism mounts as Australian Senate committee hears it is “wrong to go ahead” with ESOS amendments bill as is Read More

Most Popular

  • Recent policy changes slowing student interest in the UK, Canada, and Australia Read More
  • Germany confirms increase in proof-of-funds requirements for student visa applicants Read More
  • New Zealand expands work rights for accompanying dependants of foreign students Read More

Because you found this article interesting

International enrolment declines pressuring UK universities this year, with one in three facing significant financial challenges It is becoming increasingly clear that a decline in international enrolments is putting the finances of UK universities...
Read more
International students contributed $31 billion to Canadian economy in 2022 An updated analysis from Global Affairs Canada (GAC) estimates that the combined direct and indirect GDP contribution of...
Read more
Prospect survey points to key factors in study abroad planning for 2024 A global survey of nearly 27,500 prospective international students provides some helpful insights on key decision points in...
Read more
US launches new market diversification dashboard Given the need for new and better ways to collect and interpret data on international student movement, we...
Read more
Foreign exchange: What could a stronger pound and dollar mean for international students this year? In the first months of 2024, immigration policy changes in Australia, Canada, and the UK have been a...
Read more
Comparing student visa proof of funds requirements across 20 study destinations In recent months, some major study abroad destinations have increased the amount of available, guaranteed funds that international...
Read more
The impact of immigration settings, affordability, and job opportunities on international students’ study abroad decisions New research underlines the extent to which international students look closely at work opportunities and immigration policy in...
Read more
Survey findings underscore the link between English proficiency and career success New research from Pearson shows that English language learners see mastery of English as vital to their career...
Read more
What are you looking for?
Quick Links