16 April 2012

The Key to Profitable Student Accommodation Investment

Student accommodation remains a good investment if you do your research and look for the right projects in good locations.

 

Not only should investors consider proximitiy to the university or institutions of further education. they should also look at what is going on with that particular university; is there any new investment or courses that will maintain or increase the popularity of the university, are student numbers growing or falling, etc..

 

The modern accommodation of studios or cluster flats with their high specification of en-suite accommodation is proving very popular. In a recent survey of one university 94% of students surveyed expressed a preference for accommodation of this type over the old fashioned residences and house shares. This view is echoed by CBRE.

Over £246 million of student housing investment deals have been transacted in the first quarter of 2012, new research from CBRE has revealed. In 2011, investment in student accommodation grew by nearly 50% to over £1.1bn.

Jo Winchester, Head of Student Housing, CBRE, said:

“Applications are currently 80,000 ahead of the number of acceptances in 2011. While we do not expect student numbers to fall nationally due to fee increases, we do anticipate wide variations at a local level. However, it is still too early to identify which universities will have reduced cohorts in 2012 and how demand for accommodation will be affected in those towns.

“Looking ahead, developers will need to not only consider student numbers and bed-spaces, but most critically the financial strength and popularity of universities in conjunction with the underlying dynamics of the property market. Support from universities together with clever structuring is likely to assist planning and funding solutions for new development.”

Principal international have an excellent range of student projects in key locations and will be launching more shortly, please click here for further details