Great Investment Opportunity in UK Student Accommodation Sector
LONDON: There will be a huge spurt in the global ‘travelling students’. It is being predicted that by 2012 the number will double to 8 million, with Britain attracting more students than the US.
By: Instyle Apartments
According to UCAS, the number of applications is growing and in June 2013 it increased by 3.1 percent over the previous year. The percentage increases in student applications was mostly from Malaysia with a 25 percent increase, while non-EU applications were up by 6 percent on an average.
Universities have also joined the fray of student accommodation. Many universities are using that as part of the overall marketing strategy in attracting international students.
Clearly those days are gone when the landlord will let out a house in the suburbs. Students are becoming discerning buyers and branding is becoming more important.
In London, a lot of activity and development is with Banks and insurance companies refinancing the existing portfolios. Outside London, such finance sources are almost non-existent.
As a norm, the number of University applications outnumbers the number of acceptances by 30 percent showing that demand is up by at least 20, 000 more students.
New Accommodation Needed
There is absolutely the need for building new accommodation. Experts say that the solution lies in forging joint ventures with developers to facilitate the new development in the domain of student accommodation.
Student Accommodation Investment
Suitable investment tools like a Student Accommodation Investment can be good for overseas investors and retirees to join hands wherein the on-site management management of the property including lettings and management can be undertaken by a professional body.
Already many investors have been drawn to UK student accommodation investments with net returns in the range of 8-9 percent per annum. It must be encouraging that the average weekly rent for a room in university owned accommodation in the UK has doubled in the last 10 years.
As the student numbers are growing with positive returns on the horizon lots of investors are becoming comfortable with student accommodation investments than investing in a volatile stock market.
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Page Updated Last on: Oct 31, 2013