Investing In Student Housing A Sound Idea Or Not?

Investing In Student Housing  A Sound Idea Or Not?

Student housing investment UK was a wavering market and investors were confused regarding the fact whether they should invest in this market or not. The ground reality is that investment sector is booming again and offering healthy prospects for wise investors.

CBREs report

CBRE issued a report on student housing sector of UKs real estate market in 2013. This report indicated the fact that this sector is offering good returns and has seen a hale and hearty growth of about 3.24% while the returns have been reported at 9.95%.

These market indicators show that student housing is a good market because now the government is paying attention to this niche and thus it will surely increase in its worth. The UK government has also brought in some special incentives that will lend further support to this market.

International students contribution

The students coming from all over the world constitute a big portion of student body studying in UK education institutes of international standing. These aspiring students are paying high tuition fee and are bearing living expenses too.

The living expenses incurred by the international students contribute a major portion to student housing investment UK. According to the CBRE report, the incoming students from international institutes will rise up by another 20% in the coming 5 years; thus lending lucrative boom to this real estate niche.

2010 saw a decline in this segment because the international students were not granted as many admissions in UK; so the input coming from their living expense declined. But the report published has declared that October 2013 has seen a reversal in this trend.

Government inducements

Another healthy sign for the student housing investment UK is that government is facilitating these real estate investors in student housing by opening another 5000 institutes that will further encourage international students to apply here. Also the UK government has no intention of placing a threshold limit on the number of incoming students.

The visa system for international students coming to UK for studies is also being changed so that the country can expect greater number of people to come to this worthwhile country for higher studies in universities and colleges.

Accommodation in towns

Most international students prefer to accommodate themselves in the regional towns for many benefits. The rental growth in such areas is about 3.51% showing that this industry is as good as it claims to be. On a 3- year average, the rental growth will be almost 3.36%; so any investment made here will bring forth its revenues.

Capital value growth

Capital value growth in these cities and towns is also a good indicator for student investment housing UK. Regional towns and cities have shown a rise of 12% for each beds value. At the end of 2012, this value soared up to 56,600.

Although this may not seem like good news for the students but there are many good enticements for them as well. On the other hand, CBRE report has served to rejuvenate investor confidence in student housing investment UK .