Purpose-Built Student Accommodation
The only REAL student asset class:
Assetz have been long-standing advocates of investment within the student property sector. High-quality, well-managed, purpose-built student accommodation has proven time and time again to be the most reliable, secure, income-generating asset class within the world of property investment.
The attraction of the sector has been driven by structural undersupply and positive rental growth every year throughout the economic downturn and after. With applications to higher education courses increasing year on year, and a shift in accommodation requirements, student property is evolving and is now recognised as an important element in the wider property market. The stability and performance, combined with the improvement in profile of the sector have established student accommodation as an asset class in its own right
By carefully selecting the right product, student property can provide a reliable and resilient market for long-term, cash-generative investment.
View our range of purpose-built student property
What to look for when investing:
- Is the development purpose-built? We have seen a plethora of vacant commercial buildings/period properties undergoing refurbishment and offered to the investor market as ‘student pods’ and ‘student boutiques’. In our experience, these refurbished buildings are not suitable for long-term sustainable halls of residence accommodation. This is due to the high cost of maintenance these buildings naturally incur; they also tend to be outside the University catchment area. We only consider PURPOSE-BUILT student halls of residence.
- Is the developer experienced in developing purpose-built student accommodation? If not, they are unlikely to fully understand the needs and demands of today’s student population, which will result in short life span of the development and an inability to achieve 100% occupancy.
- Who is the management company? Purpose-built student property requires a dedicated student facility management company who has the required experience in renting and managing this type of development. For the success of the development, the management company need to have a proven track record of managing purpose-built student accommodation that lasts.
- Are they an integrated developer/management company? Having an integrated developer and student facility manager for student accommodation projects is a massive advantage. It ensures a rigid marketing plan will be in place to attract full occupancy of the development on its completion, offering security for investors. It is also an indicator that the developer has a vested interest in ensuring the development will suit the long-term needs of the student demographic and is not just a quick build complete project.
- Have their previous student developments seen consistent high occupancy? This is a major indicator of whether their future developments are safe investments as it shows the developer's understanding of the marketplace. Full occupancy and success after the build is complete also shows that the developer cares about upholding their reputation as reliable and successful developers.
By carefully selecting the right product, student property can provide a reliable and resilient market for long-term, cash-generative investment. For full market analysis of the sector and its performance over 2013, please register today to download the Assetz Student Report 2014.
For further information on investment into student property, enquire to speak to one of our property consultants or view our range of student properties.