Why invest in student Property?
There are three main reason:
1) Top Asset Class
2) High Demand
3) Assured Return
The appetite for student housing assets has outgrown the supply of available stock. Of the £4.5bn traded by Savills last year, £1.1bn (25%) involved forward funding developments while £223m (5%) were development sites. Existing stock made up 69% of trades, the lowest proportion on record.
Analysis from Savills has revealed investment in student property will reach £5.3bn by the end of 2017, up 17% increase on 2016. Brexit may have intensified appetite for UK student housing as Savills saw £2.1bn transacted after the referendum, compared to £1.9bn earlier in the year.The largest increase in investment came from Turkey which accounted for 20% of the growth, followed by UAE (9%) and Hong Kong (5%).
As a result of a weak pound post Brexit and the superior yields and occupancy offered by student accommodation in UK university towns and cities, investment in student property has seen a sharp increase during 2017.