Student Accommodation Is Dominating The Construction Market
- 6 years ago
https://sterlingwoodrow.com/student-housing-investment-sector-dominating-market-q1-2018/ - Student housing investment sector
The student accommodation sector experienced about £1 billion of transactions in Q1 2018.
A few agencies in London produced their own reports with varying levels of investment during Q1.
CBRE reported £975m worth of transactions within the sector
JLL included joint ventures in their report, pushing the figure to £1bn
Knight Frank included JV & forward funding deals totalling to £1.2bn
What Is Particularly Attractive About Purpose-Built Student Accommodation Investment?
PBSA is affordable, with an en-suite room reflecting a typical capital value of £50-70k.
The process of purchasing is quicker because investors need to be cash-buyers.
It has become increasingly difficult to make a profit from buy-to-let so many first-time buyers find this sector appealing.
James Pullan, the head of student property for Knight Frank stated,
“Product with affordably priced rents remain attractive to many of the consolidators in the market who see this price-sensitive target demographic to be fundamental to future investment performance in a relatively volatile macro economy.”
Student Accommodation Is Dominating The Construction Market
AMA Research suggests the Higher Education sector is dominating the construction market with total output valued at around £3.9bn in 2017.
PBSA is a significant part of this growth because there is a lot of pressure for univerities to provide housing.
Only about 20% of students are being housed by university-run halls and about 1/3 of these halls were built before 1979.
They need major upgrading and luxury, high-specification PBSA meets the needs of modern day students.
Read more here;
https://sterlingwoodrow.com/student-housing-investment-sector-dominating-market-q1-2018/
Sterling Woodrow
New North House,
Ongar Road,
Brentwood,
CM15 9BB
01708 922222
The student accommodation sector experienced about £1 billion of transactions in Q1 2018.
A few agencies in London produced their own reports with varying levels of investment during Q1.
CBRE reported £975m worth of transactions within the sector
JLL included joint ventures in their report, pushing the figure to £1bn
Knight Frank included JV & forward funding deals totalling to £1.2bn
What Is Particularly Attractive About Purpose-Built Student Accommodation Investment?
PBSA is affordable, with an en-suite room reflecting a typical capital value of £50-70k.
The process of purchasing is quicker because investors need to be cash-buyers.
It has become increasingly difficult to make a profit from buy-to-let so many first-time buyers find this sector appealing.
James Pullan, the head of student property for Knight Frank stated,
“Product with affordably priced rents remain attractive to many of the consolidators in the market who see this price-sensitive target demographic to be fundamental to future investment performance in a relatively volatile macro economy.”
Student Accommodation Is Dominating The Construction Market
AMA Research suggests the Higher Education sector is dominating the construction market with total output valued at around £3.9bn in 2017.
PBSA is a significant part of this growth because there is a lot of pressure for univerities to provide housing.
Only about 20% of students are being housed by university-run halls and about 1/3 of these halls were built before 1979.
They need major upgrading and luxury, high-specification PBSA meets the needs of modern day students.
Read more here;
https://sterlingwoodrow.com/student-housing-investment-sector-dominating-market-q1-2018/
Sterling Woodrow
New North House,
Ongar Road,
Brentwood,
CM15 9BB
01708 922222