Good growth prospects for student property sector
The student property sector offers positive and robust potential for real estate investors with restricted supply and strong demand, according to a new report.
There has been a 5% per annum growth over the last six years in the sector compared with just 0.6% for commercial property and the growth has been even higher in key university towns and cities, the Knight Frank Student Property Review 2009 shows.
As demand for university places continues to rise with a 12% increase in applications for places in the 2010/2011 academic year, the student accommodation sector is maturing and becoming recognized as an important element of the wider property investment market. Since mid 2009, there been increased demand for secure income producing assets and demonstrable yield compression, the report says …