A site that could accommodate around 430 student bed spaces is quoting more than €7 million through agent Knight Frank.

The 0.87-acre site, at the former Donnelly Centre on Cork Street in Dublin 8, is within walking distance of Trinity College and St James's Hospital.

It has planning permission for 182 student bed spaces with 3,100sq m (33,368sq ft) of commercial space which was secured in 2009. This scheme, however, was based around keeping an existing commercial operation on site.

Now this is no longer the case, the agent says a feasibility study suggests a new development of 431 bed spaces along with 1,400sq m (15,069sq ft) of ground-floor retail space could be accommodated, subject to planning permission, on the site.

There are over 80,000 full-time students in the capital but on-campus halls of residence and private student schemes can only cater to around 10,000 people. Student accommodation, therefore, is one of the most product-starved sectors of the residential market.

Point Village

Three weeks ago a development company formed by UK and Irish investors announced it is to build a substantial student-accommodation scheme beside the Point Village in the north Dublin docklands. It outbid about half a dozen competitors to pay more than €20 million – more than €2 million above the guide price – for the 2.38 acres with planning permission for 935 student bed spaces. The sale underscored the strength of the market for student accommodation in the capital. Other schemes are also being planned.

Cork Street has witnessed significant residential and commercial redevelopment in recent years while Dublin City Council is developing a new public park called Weaver Park within 50m of the property.