£840m Investment in Student Accommodation
New figures released by CBRE have indicated that almost £840m of capital has been committed to investment and development in student accommodation in 2011.
The popularity of the asset class can be attributed, CBRE have advised, to the stable annual income and positive yield movements over the last year. It is reported that rents have risen by 4% regionally.
Janet Siebrits, head of residential research at CBRE said,"Any uncertainty in the wider higher education market is not reflected in the accommodation sector and we expect the strong rental growth to continue next year.
Student accommodation is more attractive than many other asset classes in the current climate and we have seen increasing interest from relatively new parties seeking to diversify their portfolios.
While investor appetite will remain strong next year, it is narrowing its focus on well-located schemes that have long-running agreements with good universities."
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