Student Flats – Despite the economic situation, is this the year you should make a commitment and invest?
Knight Frank clarified the need for student property in 2011 as ‘booming’ in the Student Property report (May 2011). In there most recent analysis, there is still much of the same still to come. The real estate monster have recorded that the UK student accommodation property investment division will continue to grow in 2012 – as the market proceeds to benefit from “strong requirement and lack of stock”. It is estimated that the need in London could satisfy another one hundred thousand student rooms.
CBRE have recorded that boardering on £840m of capital was committed to investment and development in the UK’s student and accommodation market in 2011. This quantity is greater than double that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property document anticipates that student accommodation returns have increased two fold in September 2011 to 15.1%.
It is also thought that the forthcoming tuition fee formation structure will only increase requirement for student accommodation at the most elite Institutions. Where there are a great deal of commercially valuable course places. Whilst Student Property in reach of Universitites that provide non-economically viable courses will be troubled the most due to a lack of need. A list of the top 20 Institutions to review when purchasing student property can be found within Knight Franks Student Property Broadcast entitled – The Student Property Index.
CBRE have recorded that boardering on £840m of capital was committed to investment and development in the UK’s student and accommodation market in 2011. This quantity is greater than double that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property document anticipates that student accommodation returns have increased two fold in September 2011 to 15.1%.
It is also thought that the forthcoming tuition fee formation structure will only increase requirement for student accommodation at the most elite Institutions. Where there are a great deal of commercially valuable course places. Whilst Student Property in reach of Universitites that provide non-economically viable courses will be troubled the most due to a lack of need. A list of the top 20 Institutions to review when purchasing student property can be found within Knight Franks Student Property Broadcast entitled – The Student Property Index.
The growth in the Student Accommodation division is stated to be supported by property with rents of less than £220 per week. This statement is propped up by the fact that rooms within this price bracket are filled most quickly – suggesting the biggest level of desire.
Revenue outside of London decreased from fourteen point six percent in Sept 2010 – to ten point five percent in September 2011. Knight Frank encourages investing in student property that is; located in regional economic centres, within a big student population concentration, near multiple higher educational institutions. This makes student property in Birmingham an ideal candidate.
Broadcast by both Knight Frank & CBRE recognise that education is an increasingly global marketplace. The percentage of student from abroad increased five times from 1975 to 2008. This number is estimated to double again by 2025. The continuation of this shift is underpinned by the falling value of GBP – meaning that it is getting cheaper for overseas students to study here, and the fact that the UK has five of the Worlds top twenty Higher Educational Institutions.
CBRE expects that the reconstruction of higher education course charges will remould the make-up of the student population, opposed to throwing it into decline. Overseas students will play an increasingly important role in the reformation of the student composition, resulting in international student numbers that are anticipated to increase by an average of three to six percent.
All in all, student housing in London and the surrounding areas that can be identified by the variables above could provide the investment opportunity you have been waiting for.
Broadcast by both Knight Frank & CBRE recognise that education is an increasingly global marketplace. The percentage of student from abroad increased five times from 1975 to 2008. This number is estimated to double again by 2025. The continuation of this shift is underpinned by the falling value of GBP – meaning that it is getting cheaper for overseas students to study here, and the fact that the UK has five of the Worlds top twenty Higher Educational Institutions.
CBRE expects that the reconstruction of higher education course charges will remould the make-up of the student population, opposed to throwing it into decline. Overseas students will play an increasingly important role in the reformation of the student composition, resulting in international student numbers that are anticipated to increase by an average of three to six percent.
All in all, student housing in London and the surrounding areas that can be identified by the variables above could provide the investment opportunity you have been waiting for.