This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

Student Accommodation is Now Mainstream Investment Opportunity

First name: 


Last name: 


Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category


United Kingdom  United States  Europe  India  China  Jones Lang LaSalle  London  Student Housing Investments  Philip Hillman 

Student Accommodation is Now Mainstream Investment Opportunity

By - Friday 09 November 2012

Student accommodation has now emerged as a mainstream global investment category, according to new research from Jones Lang LaSalle. The market now presents a significant investment opportunity for developers and private operators alike, with transactions in the UK reaching nearly GBP 2 million by the end of the year. This is nearly double that enjoyed in 2011.

The US is also a prime destination for student accommodation investment, although transaction levels are significantly lower than the UK, standing at just over GBP one million (USD 2 million). This positive growth indicates that student accommodation is moving away from the alternative investment sector.

Philip Hillman, lead director of student housing and higher education team in London, summarised: "Student housing is increasingly a global asset class; Students are [...] international and mobile; Developers and operators of student accommodation now operate across continents [and] investors are increasingly investing overseas."

This growth is being driven by rising student numbers, increasing to 165 million in 2011 from 98 million in 2000. By 2025, this number is expected to stand at over 263 million, offering a wealth of opportunities for investors. The stable income and "solid rental growth", combined with resilience during downturns, makes the student accommodation market appealing.

However, the global market is unbalanced, with activity primarily focused in the UK and US.  Both nations are renowned for their high quality educational establishments and enrolments are rising higher than the supply of accommodation.

Nevertheless, there is an opportunity to target foreign student markets, according to Jones Lang LaSalle. In mainland Europe, growth is likely over the next decade, while India and China could also expand their student offerings as they focus on educating more domestic students. What's more, study-abroad student numbers are expected to increase to eight million by 2025, requiring universities across the globe to offer more accommodation.

Mr Hillman commented: "Institutional investors in this sector require scale ability – the potential to secure significant operational portfolios with a development pipeline. The biggest barrier to major financial institutions investing in many of the emerging student accommodation markets is the lack of quality stock to invest in.

"However the sector in these emerging markets should benefit from an accelerated acceptance of the investment characteristics of the sector as a result of the growth of the UK & US markets."

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here



*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.

«« Back to IPIN Live

Follow IPIN Global

Latest Content

Recent Comments

Powered by Disqus