Student Accommodation becomes Investment Opportunity of Choice

11 August 2012 Categories: News

Student Accommodation becomes Investment Opportunity of Choice

Property experts were stunned last year when £375 million was invested in student property during the first 6 months of the year, but this year they are more than just stunned. This is because figures from CBRE have shown that over £800 million was invested during the first six months of this year, even though student fees are set to increase to £9,000 per year from September.

It was predicted that student numbers would fall for the upcoming academic year but it seems that applications from overseas have more than compensated for the decreased number of UK students entering further education. Hence the demand for student accommodation is higher than ever.

This trend isn’t confined to the UK though as much of Europe is also enjoying an increased demand for accommodation by students. In fact both France and Spain are providing student landlords with rental yields of around 7% and virtually 100% occupancy rates.

Marcus Roberts, an associate at Savills, commented on the potential of student accommodation as an investment opportunity saying, “Student housing markets are traditionally counter-cyclical, with student numbers growing in times of economic downturn and weakening labour markets, and this is exactly what is happening today both in terms of domestic and international students”.