The education premium – how international schools affect European prime real estate

The number of international schools has increased by 50% over the last decade, from 9,615 in 2014 to 14,457 last year, according to the data company ISC Research. This shows the increasing appetite for the market and the importance that families are placing on top education for their children.

Across the world, high-net-worth families, expats, and global executives prioritise access to elite schools when choosing where to live. The presence of a top-tier international school can significantly drive-up local property prices, making these areas sought-after investment zones. Rental yields near international schools in major European cities average 4-7% annually, making them attractive investment opportunities (Source: Savills, 2023).

Why proximity drives property prices

Several factors contribute to the real estate premium associated with international schools:

1. High demand, limited supply

Top international schools have strict admission caps and waiting lists. This creates intense demand for homes nearby, leading to price appreciation. In London, proximity to the American School in London (ASL) in St. John’s Wood has led to property prices exceeding £20,000 per square meter, well above the citywide average of £11,000 (Source: Knight Frank, 2023).

2. Expat and HNW family preferences

For globally mobile families, education stability is a priority. Parents prefer living close to top-ranked institutions to reduce commute times and integrate into international communities. In Geneva, homes near Institut Le Rosey and the International School of Geneva often sell 20% faster than those further away (Source: UBS Global Real Estate, 2023).

3. Price resilience and long-term appreciation

Even during economic downturns, properties in international school zones tend to retain value. In Paris, real estate in Neuilly-sur-Seine—home to Lycée Français de Charles de Gaulle—outperformed the broader market during the 2020 economic slowdown, showing a 5% annual price increase while other areas stagnated (Source: BNP Paribas Real Estate, 2023).

Where is this most prominent?

London, Switzerland, Madrid, and Paris are all key locations where international schools shape the prime property markets.

London remains one of the world's most desirable cities for international education, with a high concentration of prestigious schools catering to expatriates, diplomats, and global executives. Some of the top schools include the American School in London, Lycée Français Charles de Gaulle and Halcyon London International School. Prime districts such as Kensington, Chelsea, Hampstead, St. John’s Wood, and Richmond see consistently high demand from families seeking proximity to these institutions.

Switzerland is renowned for its elite private schools, attracting high-net-worth families seeking world-class education and stability. Leading institutions include Institut Le Rosey, International School of Geneva, Zurich International School, and Collège du Léman and the most desirable areas include Cologny, Collonge-Bellerive, Seefeld, and Küsnacht,

La Moraleja, Madrid has one of the biggest concentrations of private schools per sqkm in Europe and is ever expanding. The American Brewster Academy opened its first campus in 2023, and will open a second in the area in September. British school Runnymede College has also just opened a new prep school building due to increasing demand. The Lucas Fox La Moraleja team estimate the effect of this on property prices (both rentals and sales) to be as much as 10%.

Markets such as Marbella and Mallorca are also seeing an increase in the number of international schools opening in their market. In Marbella, areas like Sierra Blanca and Nueva Andalucía have seen consistent year-on-year price increases of 5-8%, largely due to the pull of these prestigious institutions (including Swans International and Aloha College) as more expat families are moving to the area. (Source: Idealista, 2024). Mallorca has long been an attractive destination for holiday goers, but in recent years it has become a hub for year round living, with areas such as Son Vida, Portals Nou and Santa Ponsa as hotspots for families looking for a base. Top international schools include Agora Portals International School, Baleares International College and Lycée Français International de Palma.