Student property becomes the number one asset class

Student property becomes the number one asset class

Savills has recently revealed a report which shows that student property has become the number one asset class and is the mainstay of any good property portfolio.

This report has also shown that the investment levels in student housing have skyrocketed making this investment class mainstream. Not so long ago, this type of investment was taken into consideration only as an alternative to other more traditional investments but the latest statistics suggest that it has now become so popular that even first time investors are taking a plunge into the student property market.

Another interesting fact is that the middle class in emerging economies around the world has become much stronger and this is one of the main reasons why this sector is thriving. UK universities attract a lot of interest from students in the Far East and Asia and there is an aspiration in those locations to give their children the very best education that money can buy. The UK has seen 6.5 billion dollars’ worth of investment in the first three-quarters of 2015 in student accommodation so that illustrates how big a sector it is becoming.

Increasingly, students are looking for accommodation that is secure and of high quality. More and more students are studying abroad and the UK’s excellent reputation for top universities attracts many students to our shores.

The UK has not only witnessed a rapid increase of domestic students, but they have also seen an increased number of foreign students. This means that there is a high demand for suitable accommodation and PBSA (purpose-built student accommodation) are springing up in all of the UK’s university towns and cities to deal with the influx. Investors in this sector can expect steady income, low levels of risk and a continuous demand base.

There are currently more than 2.3 million students in the UK and more than 15% of them or around 390,000 are foreign students. This situation is not expected to change any time soon so the demand for student property is forecast to increase even further.