UK’s Bubbling Student Property Sector

Student property has become an increasingly popular asset class for investors recently with growth of students plunging to new numbers worldwide.

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Local and international investors are attracted to this new trend due to its high yields on offer which is set to continue in the near future.

According to popular Knight Frank reports, an estimate of £12.9 Billion investors invested in student property over the last decade with a majority of investors (39%) alone invested in 2015.

“Student Property has been the far most successful real estate asset classes, thanks to stability of demand for student bedrooms from all over the UK although the market is still under supplied structurally in most of the university cities” states James Pullan, the head of Knight Frank Student Accommodation.

2015 was a remarkable year for Purpose Built Student Accommodation (PBSA) investment market for making £5.1bn transactions. Out of 49,271, student bedrooms transacted over 46% were developed by institutions.

While the big picture of the market demonstrates (3.65%), every market is believed to have different credentials based on the current level of structural under supply along with development pipeline and its consistent distribution in a given year.

London projects (3.8%) and Manchester (4.8%) are relatively good examples of cities with large student populations and very consistent delivery pipelines. Both these cities projected a high rental growth rate in 2015 and is anticipated for a consistent rental growth with the national trend (3.65%) in 2016.

What more can you ask for?

Student property has been one of the most yielding and successful asset classes in the UK market and by investing at Herald Land, investment opportunities just go one step ahead.

Contacts us: +971 4 440 3100

Register with us: http://www.heraldland.net/register/campaigns/?campaign=Blogs-student-property

 

Reference

https://www.ft.com/content/08bd773e-76dd-11e3-a253-00144feabdc0

http://content.knightfrank.com/research/793/documents/en/momentum-3714.pdf

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