Student Houses – Despite the recession, is 2012 the time you should make a commitment and invest?
Knight Frank defined the demand for student property in 2011 as ‘booming’ in the Student Property document (May 2011). In there latest review, there is still much of the same still to come. The real estate monster have wrote that the UK student accommodation property investment sector will continue to thrive in 2012 – as the division proceeds to benefit from “strong need and lack of stock”. It is anticipated that the demand in London could meet another one hundred thousand student addresses.
CBRE have stated about £840m of capital was devoted to investment and development in the UK’s student and accommodation market in 2011. This quantity is more than two times that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property broadcast estimates that student property returns have doubled in September 2011 to 15.1%.
It is also thought that the new University fee formation structure will only increase requirement for student houses at the most renowned Institutions. Where there are a large number of commercially valuable course positions. Whilst Student Property close to Universitites that provide non-commercially viable courses will be troubled the most due to a lack of need. A list of the top 20 Universities to review when buying student property can be found within Knight Franks Student Property Report entitled – The Student Property Index.
The escalation in the Student Housing market is stated to be supported by property with rents of less than £220 per week. This statement is supported by the fact that beds within this asking price bracket are signed the quickest – indicating the largest level of desire.
CBRE have stated about £840m of capital was devoted to investment and development in the UK’s student and accommodation market in 2011. This quantity is more than two times that of £350m in capital committed in 2009. Knight Frank’s most recent Student Property broadcast estimates that student property returns have doubled in September 2011 to 15.1%.
It is also thought that the new University fee formation structure will only increase requirement for student houses at the most renowned Institutions. Where there are a large number of commercially valuable course positions. Whilst Student Property close to Universitites that provide non-commercially viable courses will be troubled the most due to a lack of need. A list of the top 20 Universities to review when buying student property can be found within Knight Franks Student Property Report entitled – The Student Property Index.
The escalation in the Student Housing market is stated to be supported by property with rents of less than £220 per week. This statement is supported by the fact that beds within this asking price bracket are signed the quickest – indicating the largest level of desire.
Revenue in the rest of the UK fell from fourteen point six percent in Sept 2010 – to 10.5% in Sept 2011.
Knight Frank recommends investing in student housing that is; located in regional economic centres, within a high student population concentration, near multiple universities. This makes student accommodation in Birmingham a preferable candidate.
Report by both Knight Frank & CBRE specify that education is an increasingly global marketplace. The proportion of overseas students rose five fold from 1975 to 2008. This amount is estimated to increase two fold again by 2025. The perseverance of this shift is underpinned by the falling value of GBP – this means that it is becoming more economically viable for overseas students to study here, and the fact that the UK has five of the Worlds top 20 Higher Educational Institutions.
CBRE predicts that the restructuring of higher education course charges will remould the make-up of the student population, opposed to forcing it into decline. Overseas students will play an increasingly important role in the reconstruction of the student composition, resulting in international student numbers that are expected to increase by an average of three to six percent.
In summary, student property in London and the surrounding areas characterised by the variables above could provide the investment opportunity you have been looking for.
Report by both Knight Frank & CBRE specify that education is an increasingly global marketplace. The proportion of overseas students rose five fold from 1975 to 2008. This amount is estimated to increase two fold again by 2025. The perseverance of this shift is underpinned by the falling value of GBP – this means that it is becoming more economically viable for overseas students to study here, and the fact that the UK has five of the Worlds top 20 Higher Educational Institutions.
CBRE predicts that the restructuring of higher education course charges will remould the make-up of the student population, opposed to forcing it into decline. Overseas students will play an increasingly important role in the reconstruction of the student composition, resulting in international student numbers that are expected to increase by an average of three to six percent.
In summary, student property in London and the surrounding areas characterised by the variables above could provide the investment opportunity you have been looking for.