Up to €250 million will be spent on building student accommodation in Ireland, by Irish and foreign investors, in the next five years, according to a survey by estate agent Knight Frank.

Sam Ball, senior surveyor with Knight Frank's student housing team, said the investment is being driven by an undersupply of student housing in Dublin with about 90 per cent of the city's students unable to access university or private-sector accommodation.

“It’s one of the most acutely under-supplied markets I have worked in. We are advising and engaging on a number of exciting projects coming through in the next five years,” said Mr Ball.

“International investors recognise the quality of Dublin’s higher education institution provision and . . . the . . . undersupply. Knight Frank believes there will be in excess of €250 million invested within the next five years if planning barriers can be removed.”

Demand increased following a Government initiative to increase international student numbers in the city by 50 per cent. “There’s north of 80,000 students and 20 per cent of those are international students,” he said.

London-based Knightsbridge Student Housing already has planning permission for a €40 million development for 500 students in the Liberties area of Dublin.

In September the former Montrose Hotel near UCD, will reopen as student housing for 192 people.