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

Student Homes - Decide Investment on City by City Basis

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


Savills  Yolande Barnes  Student Investment 

Student Homes - Decide Investment on City by City Basis

By - Thursday 18 July 2013

When it comes to investing in student accommodation, people are being reminded to decide on a city-by-city basis. While it can be tempting to get swept up in the hype of the student market, thanks to a supply-demand imbalance and strong yields, Savills is stressing a clear head is essential. Spotlight on European Student Housing 2013 makes it clear any decision must be made based on conditions in each city, not nationally.

Savills analysed investment risk of 119 cities that are home to Europe's top tier universities. In addition to compiling a selection of locations with strong universities, low supply and high demand for investors, it also highlighted areas where student accommodation may not be the best horse to back. High saturation and growing numbers of purpose-built student housing in some locations mean markets are already jam-packed with landlords. However, there are those where supply remains low and yields high.

The UK is certainly the most popular place for student investment at the moment, accounting for 28 per cent of cities within the top European city investor opportunities. London, Edinburgh, Oxford and Manchester are just a few British places identified as having strong prospects and lower risk. However, Savills claims increased fees, high rents and visa restrictions could affect the future of the market. Combined with a growing number of European institutions offering courses in English to attract students, the UK could find itself challenged over the coming years.

Yolande Barnes, Savills director of World Research, said: "Yield compression in  mainstream property assets is boosting the appeal of student housing particularly for commercial investors looking to spread their exposure into residential. It offers relatively high yields and low voids, producing a secure income stream on a single operational lease.  In this way it could be considered a stepping stone to ‘build to let’ or purpose-built mainstream rental blocks in the open market rental sector." However, she stressed that investors need to "look beyond headline supply-chain demand and yield indicators to fully understand market strength".

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