Previously, we discussed how the UK’s world-class educational institutions have attracted students from all over the world, driving demand for commercial student property. Today, we talk about where to invest in commercial student property.
Britain’s is known for its world-class education. And with the rise in student numbers comes the demand for proper student housing. Knight Frank and Savills reports that student property now stands as the fastest-growing property sector in the UK, with demand consistently exceeding supply – unsurprising, considering that the student population is expected to exceed its current 2.3 million (and counting) by 20% – 30% in the next 5 years according to the Department for Business, Innovation and Skills.
Cities like Birmingham, Bristol, Exeter, Liverpool, Manchester, Newcastle and Sheffield have been touted as some of the best places to invest in UK student property. Here’s why: these cities are home to universities that are members of the prestigious Russell Group. Russell Group universities rank highly in the UK university league tables, attracting higher enrolment which, in return, creates steady demand for accommodation. Simply put, the more renowned the university, the stronger the rental market.
Let’s take Cambridge and Newcastle as examples. The universities in both cities are constantly expanding and evolving, and this has a direct impact on the investors’ profits. Cambridge city’s population is expected to increase more than 20% in the next decade, which will lead to an increasing student rental sector . Newcastle, on the other hand, being one of the largest universities in the UK, houses more than 31,000 students from 130 different countries.
Of developers and builders, there are many, but when it comes to investing in property, the credibility and experience of a developer is crucial..
Student accommodation located closest to universities, the city centre and which are within reach of amenities are likeliest to have the highest demand. Research has also shown that students have become more discerning and want to be treated like true customers, preferring accommodation with first class facilities like quality living space, high-speed bandwidth and communal sections that encourage optimum interaction.
Investors should consider investing in student property brands that are credible and have a track record. There are many players in the market, but not many with expertise and experience.