So just how dynamic is this Student Accommodation marketplace?
The Student Accommodation marketplace has been rapidly growing. £5.7bn of it was transacted in 2015 and a further £900,000,000.00 of it bought and sold in only 90 days this summer taking the 2016 nine month total to £3.5bn.
So I guess it’s a little lively!
522,000 students have enrolled so far which is up by 7,000 from 2015 and there has been a notable shift in the requirement for quality student accommodation facilities. In fact according to AUDE’s* latest student experience survey, 61% stated that desire was a very important factor when making their decision – fascinating when only 44% viewed academic rankings as an important factor.
The expected surge from overseas students has come to pass and a similar increase is almost sure to repeat in 2017/18. This has understandably pushed the requirement for additional private sector student accommodation to help relieve the pressure on the Universities Halls of Residence – specifically in the first year.
61% of University students stated the desire for quality student accommodation facilities – fascinating when only 44% viewed academic rankings as an important factor.
Not surprisingly finance is readily available for those looking to build and this is further supported by ever-increasing overseas investors looking to maximise the opportunity.
Worthy of note that 46% of the 49,271 student bedrooms sold were bought by Institutions.
Whilst there is an aggressive build plan across all major UK cities the reality is that these assets need more and more looking after, as their usage becomes full time, through not only the never ending supply of students but also the capitalising of such facilities for conferences and events.
With so much money being spent on what is clearly a long term and highly profitable investment – it does make you wonder why it is not looked after better.
Michael BurkeManaging Director