More than 4,500 purpose-built student accommodation units were constructed in 2015, according to figures from Barbour ABI. Overall, the value of construction projects in this sector surpassed £2.3 billion.
As a result, investment in purpose-built student accommodation is now at a five year high.
The 4,500-plus new purpose-built units was a 26% year-on-year uplift in comparison to 2014. In addition, it was the highest number of new units built since the global financial crisis hit in 2007-8.
Investor demand doesn't look like slowing up, either - in the final quarter of 2015 there were 2,117 purpose-built units commissioned.
With more students attending British universities and demanding high-quality accommodation, investor appetite for this type of accommodation is expected to remain high in 2016.
“The removal of the cap on student numbers may have also triggered many universities to anticipate an increase in enrolment over the coming years, hence the jump in the number of new student bedrooms being commissioned in 2015,” Michael Dall, Lead Economist at Barbour ABI, said.
“As investor appetite remains high for student housing, I expect it will be at the forefront for many contractors over the coming years.”
All in all, more than £6 billion was invested in the purpose-built student accommodation sector last year, further cementing its position as the country's number one asset class.