Student accommodation, healthcare property and hotels leading the way

Student accommodation, healthcare property and hotels leading the way

Student Accommodation

According to property specialists Knight Frank, it will be student accommodation, healthcare properties and hotels which will lead the way in property investment in 2016.

Over the last 12 months’ student accommodation and healthcare property have seen the benefits of increased student numbers and the closure of several public sector care homes and this is set to continue. Together with hotels and alternative commercial property investments, these two asset classes will continue to lead the investment tables.

Over £14 billion of investment in the above sectors is expected in 2016 and that’s 10% above what was achieved in 2015. Knight Frank have indicated that investors are now looking to niche property sectors as safer investments which will deliver a stable and consistent income over the long term.

In 2015, over 18% of commercial property investment was in the alternative market, with overseas investors particularly keen in this reliable investment opportunity. Knight Frank fully expect this to increase in 2016 as investors look for steady ways of growing their income.

Shaun Roy, who is the head of specialist property at Knight Frank, sums it up nicely – “The market has changed. Investors’ primary focus now is the longevity and durability of their income return and the specialist sectors are ideally suited to offer this style of investment product to the market.”