Strong student property pipeline will encourage investors

Strong student property pipeline will encourage investors

The latest development update from Knight Frank has revealed that there are around 29,000 purpose-built student bedrooms due to be delivered across the UK by the start of the 2019/20 academic year – that’s a 25% increase from 2018/19.

This significant increase in activity will bring the total number of purpose-built student bed spaces to approximately 600,000 – a rise of just over 5% on the previous year. Knight Frank’s figures also show that an additional 14,000 bedrooms are currently under construction in preparation for the 2020 and 2021 academic years. This could go up further if student applications continue to rise as they have done so historically.

The private sector has been a key player in the development of the student property market in recent years, with 82% of bedrooms in the pipeline coming from private developers.

Commenting on the development update, James Pullan, Global Head of Student Property at Knight Frank, said: “The significantly larger pipeline this year shows that confidence in purpose-built student accommodation remains undiminished. Affordability will remain a key focus for owners, operators and students, and our analysis shows a shift in development towards shared accommodation in response. Schemes that provide clear and obvious elements that add value will attract the strongest demand.”

For investors in student property, the latest analysis from Knight Frank is very encouraging.