Student Property – Despite the recession, is this the time you should make a commitment and invest?
Knight Frank defined the demand for student accommodation in 2011 as ‘booming’ in the Student Property publication (May 2011). In there most up-to-date inspection, there is still an extended requirement anticipated. The property giant have wrote that the UK student accommodation property investment market will carry on thriving in 2012 – as the division keeps on benefiting from “strong need and lack of stock”. It is anticipated that the need in London could cater for another 100,000 student beds.
CBRE have wrote that almost £840m of capital was committed to investment and development in the United Kingdom’s student and accommodation division in 2011. This value is more than two times that of £350m in capital devoted in 2009. Knight Frank’s most recent Student Property broadcast predicts that student accommodation returns have increased two fold in September 2011 to fifteen point one percent.
It is also thought that the new University fee make-up structure will only increase requirement for student property at the most prestigious Universities. Where there are a large number of sought after course places. Whilst Student Property in close proximity to Universitites that provide non-economically viable courses will be affected the most due to a lack of requirement. A list of the top 20 Universities to take into account when buying student houses can be found within Knight Franks Student Property Publication entitled – The Student Property Index.
CBRE have wrote that almost £840m of capital was committed to investment and development in the United Kingdom’s student and accommodation division in 2011. This value is more than two times that of £350m in capital devoted in 2009. Knight Frank’s most recent Student Property broadcast predicts that student accommodation returns have increased two fold in September 2011 to fifteen point one percent.
It is also thought that the new University fee make-up structure will only increase requirement for student property at the most prestigious Universities. Where there are a large number of sought after course places. Whilst Student Property in close proximity to Universitites that provide non-economically viable courses will be affected the most due to a lack of requirement. A list of the top 20 Universities to take into account when buying student houses can be found within Knight Franks Student Property Publication entitled – The Student Property Index.
The escalation in the Student Housing division is stated to be supported by housing with rents of less than £220 per week.
This statement is propped up by the fact that rooms within this asking price bracket are signed the quickest – expressing the largest level of desire.
Revenue outside of London fell from fourteen point six percent in September 2010 – to 10.5% in September 2011. Knight Frank recommends investing in student housing that is; located in regional economic centres, within a big student population density, near more than one higher educational institutions. This makes student property in Birmingham a suitable option.
Documents by both Knight Frank & CBRE suggest that education is an increasingly global marketplace. The proportion of student from abroad increased five times from 1975 to 2008. This number is expected to double again by 2025. The continuation of this trend is propped up by the declining value of the pound – meaning that it is getting cheaper for overseas students to study here, and the fact that the UK has 5 of the Worlds top 20 Higher Educational Institutions.
CBRE expects that the restructuring of higher education course charges will remould the make-up of the student population, opposed to forcing it into collapse. Overseas students will play an increasingly important role in the reformation of the student make-up, resulting in foreign student numbers that are anticipated to increase by an average of 3-6%.
In conclusion, student housing in London and localities that can be identified by the variables above could facilitate the investment opening you have been looking for.
Revenue outside of London fell from fourteen point six percent in September 2010 – to 10.5% in September 2011. Knight Frank recommends investing in student housing that is; located in regional economic centres, within a big student population density, near more than one higher educational institutions. This makes student property in Birmingham a suitable option.
Documents by both Knight Frank & CBRE suggest that education is an increasingly global marketplace. The proportion of student from abroad increased five times from 1975 to 2008. This number is expected to double again by 2025. The continuation of this trend is propped up by the declining value of the pound – meaning that it is getting cheaper for overseas students to study here, and the fact that the UK has 5 of the Worlds top 20 Higher Educational Institutions.
CBRE expects that the restructuring of higher education course charges will remould the make-up of the student population, opposed to forcing it into collapse. Overseas students will play an increasingly important role in the reformation of the student make-up, resulting in foreign student numbers that are anticipated to increase by an average of 3-6%.
In conclusion, student housing in London and localities that can be identified by the variables above could facilitate the investment opening you have been looking for.
