Student property investment needs to reflect growing non-EU undergrads numbers

Student property investment needs to reflect growing non-EU undergrads numbers

The number of international students entering UK universities has dramatically increased over the past decade, a new report has outlined.

Summary:

  • Student property has become a major new investment asset class
  • The numbers of international students entering UK universities is increasing
  • Student property must reflect that by offering accommodation that makes overseas undergrads feel welcome

Student property has become a major new investment vehicle over the past few years.

It offers investors a chance to own a bricks and mortar asset that mitigates much of the risks people associate with the more general property market due to the critical undersupply of purpose-built student accommodation.

Another reason student property standards apart from more cyclical real estate is the constant supply of new tenants. In recent years this influx has been buoyed by an ever increasing number of international students.

Universities UK Patterns and Trends in UK Higher Education report has revealed the total number of non-European Union students in the UK has increased by 59% over the past decade.

The number of students from the Middle East traveling to Great Britain to study has more than doubled between since 2003, while non-EU Europe student traffic rose by 77%, and Asian traffic recorded a 63% rise.

Asia remained the biggest provider of international students to UK universities, accounting for nearly two-thirds of the total number.

In his foreword for the report, Professor Paul O’Prey, Chair of Universities UK, said: “The higher education sector continues to make a crucial contribution to the development of the UK as a world-leading economy.”

Student property investments that go to extra lengths to ensure these international students are integrated into the UK, by providing accommodation that delivers a ready-made community and a great university experience are more likely to appeal to the tenant base and consequently provide long-term yields for investors.

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