the property investment experts

Purpose Built Student Accommodation Market Now Worth £43 Billion

Posted: 13 October 2017

Following record investment in 2015, student accommodation is growing beyond niche investment to mainstream asset class
 

A Buoyant Year of Investment for Student Property in 2017
 

2016 was yet another banner year for purpose built student accommodation (PBSA), generating more than £3.2 billion in transactions, the equivalent of 68,000 beds sold, according to global estate agency JLL.

Purpose Built Student Accommodation Market Now Worth £43 Billion
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With the latest figures by UCAS showing that 493,860 students have been accepted to university courses - momentum in the purpose built student sector is expected to increase.

As UK universities continue to attract ample number of students, projections for 2017 will see investment in the PBSA market achieve record levels again, with £5.3bn forecast to be traded by the end of the year, a 17% annual increase.
 

A Lower Pound Sees International Buyers More Eager to Capitalise
 

A major driving force in the student property investment market has been overseas capital, as international buyers looking to capitalise on the depreciation of Sterling nearly doubled their share of the market between 2015 and 2016, rising from 35% to 64%.

Commenting on the strength of the sector, Aaron Campbell, managing director at PrinvestUK, said that purpose built student accommodation “is now a property investment powerhouse in its own right”.

“Now worth more than £43 billion, the student accommodation market continues to attract investors around the world; all seeking to capitalise on the UK’s systemic undersupply of stock and the enduring strength of the sector’s performance” he added.

For those looking to invest in PBSA, a recently released report by property specialists PrinvestUK – The Student Report 2017 – provides a comprehensive source of information, encompassing a multitude of sources and data from the industry.