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Total investment in UK student accommodation has broken the £2 billion mark for a third consecutive year, according to global property advisor CBRE. 
 
Year to date figures show that £2.37 billion has been invested into the sector over 2014, surpassing last year’s total of £2.2 billion.
 
“Institutional investors, who previously would only consider long leased product or indirect investment, have made a number of purchases of direct let, directly owned assets. This is a dramatic shift from 2012, when the direct let institutional investor hardly registered in the market,” said Jo Winchester, Head of Student Housing Advisory at CBRE.
 
“Now, with such a varied list of investors interested in this sector, UK student housing is arguably the most advanced of “alternative” assets, offering investors an “easy to understand” opportunity.”
Investment in student housing in the capital increased this year, with London claiming 35% of the £2.37billion invested. This is an increase from 2013 when deals in the capital accounted for just 12% of the total.
 
Winchester added: “Increased activity in London can in part, be attributed to strong rental growth prospects due to constrained supply. Student housing is seen as attractive to investors as it offers relatively high yields compared to other Central London property and is available for a lower capital value per sq ft.”
 
She said that despite the growth recorded in London this year, student accommodation in other regions of the country is still attracting significant investment due to better opportunities for rental growth. 
 

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