In these days of economic uncertainty, investors are increasingly looking for a safe bet and, as far as property is concerned, investment in PBSA (Purpose-Built Student Accommodation) fits this bill.
Over the past couple of years’ investment in student property has soared, with institutional as well as individual investors (many from overseas) investing in high quality student properties across Britain’s university cities.
In 2015, we saw over £5 billion of investment in PBSA, which was more than student property investment levels in the US. The UK has some of the top performing universities in the world and these attract students from all over the globe to these shores. And whilst £5 billion was a staggering amount of investment, the student property market hasn’t peaked yet. Far from it, investment in 2016 had been equally as impressive and student property is now regarded as one of the top performing investment asset classes currently available.
According to the latest stats from Knight Frank, the student property sector is worth around £43 billion when you look at the stock owned by universities and in the private sector. There are an estimated 525,000 rooms in the PBSA sector currently with another 100,000 in the pipeline, and this still isn’t meeting the demand.
So why is student property considered such a safe bet?
There are a few simple reasons for this. UK universities are highly regarded, there is an increasing supply of students every year from home and overseas, and students have become more discerning and are demanding higher quality accommodation.
From an investors perspective, student property offers consistent and regular income, very decent yields and a hassle-free investment choice. It is also one of the very few sectors in the property market that has delivered consistent rental growth since the recession.
In a Post Brexit and Post Trump world, property investors are looking for stability and student property offers this more than any other type of investment class.
To find out more about student property investment opportunities, contact us now on 0333 3001 888.