Knight Frank: London Number 2 Student Accommodation Investment Destination

According to Knight Frank, Paris has overtaken London to become the world’s number one location for student accommodation investment.

Just missing the sought after no.1 spot, Knight Frank cited that London’s expensive cost of living attributed to its fall off the no.1 spot.

“Student accommodation in the UK has delivered solid and consistent returns throughout every year of the economic downturn, thereby attracting significant volumes of international equity and institutional debt into the sector,” James Pullan, head of student property, Knight Frank, commented.

Ranking the five top spots for student accommodation investment Paris was selected as no. 1 followed by London, Vienna, Dublin and Barcelona.

In relation to the overall globalisation of the world’s economies, there has been a high rise in students travelling abroad to study for a university degree. The demand from international students for places in esteemed universities has had an impact on the popularity of investment in student property.

Knight Frank also stated that the increase of the middle classes in emerging economies, the acceptance of international higher education qualifications across the world and the growth of a well-informed ‘internet generation’ of students have also helped increase the popularity of the the student property asset class.

“The rise in global student mobility has created an excellent opportunity for investment in key European cities and is a long-term trend that is set to continue. This structural shift in the make-up of student populations has significant consequences for cities that play host to the world’s best universities, and throws up key opportunities for developers and operators,” Pullan continued.

Students from Non-EU countries who come to the UK to study are often from the more wealthy families as generally in relation to their own countries the education and the cost of living in the United Kingdom is very expensive.

That said it is also the wealthy families which are more likely to be investors and particularly the higher net worth investors who have enough funds to invest overseas. So it would make sense for them to consider investing where their family members and or friends are studying.

This is shown in the fact that the customer base for new purpose built student accommodation in the United Kingdom includes a high amount of foreign students.

Jerald Solis Business Development Manager for Experience International, one of the leaders in UK Student accommodation investment market stated.

“An increasing amount of overseas investors from Asian counties including China, Hong Kong, Singapore, Malaysia, and India our investing in our UK student accommodation investment opportunities. This might be partly due to the fact that many of the projects we have sold and currently sell will likely house a large amount of resident students from Asia “

Experience International currently offer student room investment in purpose built developments in London, Liverpool, and Bournemouth all of which offer investors with 10% NET rental yields per year.

Experience International has a range of new-build student property investments in prime cities in the United Kingdom. For additional information contact them on 0207 321 5858.

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