When investing in UK commercial student property, one should consider investing in Liverpool. Liverpool is a top student city in the UK with a student catchment of more than 50,000 .
UK commercial student property is a bit like treasure; it’s a valuable asset and savvy investors are constantly searching for the X on the map. While the increasing number of local and foreign PBSA investors should be indication enough of the great opportunities in this sector, one would ultimately solidify this belief once exposed to the promising data behind this jewel of a sector.
Foreign Investors Flock Towards Commercial Student Property
Many local investors have already hopped onto the student property bandwagon, and while that may be expected, the rising number of foreign investors is a little less so. What makes commercial student property investment so popular among both local and foreign investors alike, is because it is a hands-off property investment: commercial student properties are fully-managed by professional property managers, allowing investors to commit to the venture in the student sector from the comfort of their home countries!
With the UK’s nonpareil education system ensuring continuous demand for PBSA that consistently outweighs supply, overseas investors in search of investments other than residential property will most likely find themselves in the student property sector.
Liverpool Is The Best Student City
While many urban cities in the UK boast reputable universities — it is the UK after all, and lists such as The Times Higher Education World University Rankings and QS World University Rankings prove British educational institutions continue to dominate the educational sector — none of them stand out quite like Liverpool.
A combination of pull factors place Liverpool at the forefront of UK student property investment; alongside affordable prices and excellent rental yields, a unique lifestyle experience continues to attract both local and international students.
Students are initially attracted to the high level of distinction associated with the top three universities in the city: University of Liverpool, Liverpool John Moores University (LJMU) and Liverpool Hope University. The redbrick University of Liverpool is ranked in the top 1% of education institutions in the world whilst Liverpool John Moores University and Liverpool Hope University also rank within the top 75 according to league tables by The Complete University Guide.
The other factors that ultimately mark Liverpool as the best student city is its eccentric culture. Students are enticed by the abandoned warehouse nightlife of the Baltic Triangle, the galleries and museums of the Albert Dock and the unconventional cafés on RopeWalks’ famous Bold Street.
A City for Investors
Liverpool boasts a large student population of over 70,000, which guarantees an abundance of tenants searching for the right accommodation. With most of the top student property developments marking the best student areas near Liverpool’s city centre attractions and university campuses, investors can enjoy choosing from an already promising selection without going through all the trouble.
Adding to Liverpool’s prestige is the Knowledge Quarter, a £2bn regeneration scheme that will lead the city to becoming one of the world’s leading innovation districts, further reinforcing its relevance in this modern digital era!
What every international investor is particularly attracted to is the excellent rental yields — up to 8% nett returns is commonplace in Liverpool’s student property sector! Considering low initial average property costs that provide opportunity for maximum capital appreciation over time, investors would be hard-pressed to find a greater deal.
Interesting in investing in Liverpool PBSA?
There are many commercial student accommodation developments in the pipeline. Natex, one of Liverpool’s latest to date, offers investors 9% returns, assured for five years. The 566-unit student accommodation scheme is approximately a 5-minute walk from University of Liverpool and Liverpool John Moores University — it boasts all the facilities a student would ever need (and more!).
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