UK student property leading the way

There is no doubt that the student property market in the UK is one of the most buoyant investment classes around. The fact that it attracted around $6.5 billion of investment in 2015 which is more than double the investment in the US is testament to this.

 

This is the first time the UK has outperformed the US in student housing investment which is a staggering feat when you think about the sizes of the respective countries. North American, Middle Eastern and Russian investors have been the biggest investors in the UK student property market, attracted by the huge demand that exists for student accommodation and the high returns that it yields.

 

So why is it so buoyant?

 

Well, thanks to the long history of academic excellence in the UK, its world famous universities and reputation for the quality of their university courses, there is a huge demand from both home and overseas for a British education.

 

To accommodate the huge influx of students more than 4,500 purpose-built student accommodation units were constructed in 2015 and this still isn’t enough. The value of these projects surpassed £2.3 billion, putting investment in PBSA (purpose-built student accommodation at a five year high.

 

With the removal of the cap on student numbers the demand for new PBSA is set to continue for the foreseeable future, making investment in this asset class highly desirable.

 

8 March 2016
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