CBRE’s quarterly market review in Q1 2012 has revealed student property investments in the UK increased by 50 percent in 2011.
According to the report £1.15 billion was invested into student properties, increasing from £774 million in 2010. CBRE’s review also revealed that £246 million has been invested in student property in the first quarter of 2012.
Direct-let student properties are performing very well with those serving second-tier regional universities outside the UK’s capital with returns of 7 percent. Direct-let properties serving top-tier regionals followed at 6.5 percent.
Increased tuition fees have affected university application numbers according to the review but only slightly. UK universities are still receiving a lot more applications than they can accept on a national basis.
International applications to UK universities is growing strongly and is expected to continue to increase as studying in the UK becomes more and more attractive to overseas students.
According to UCAS figures this year, applications outside Europe grew by 12 percent year on year. The largest application figures came from Hong Kong at 37 percent and Australia and 15 percent.
The recent figures have shown investors that now is a good time to buy student properties as property yields look very positive if you take into account the recent findings by CBRE.
Demand for quality student property has never been higher, particularly in areas such as London, Manchester and Liverpool. The predictions by industry experts in the education sector that more international students are expected to choose a UK university to study has spurred on investors to take advantage of the low property prices in the UK before high demand pushes prices up.