UK’S PURPOSE-BUILT STUDENT ACCOMMODATION MARKET VALUED AT £45.8BN
News - 6th January 2017 - (StuRents)
Posted by Financein
A recent report from Knight Frank estimates that the UK's purpose-built student accommodation sector could reach a total value of £45.8bn by September 2017.
Expectations are that 24,000 beds will come online this year, bringing the total UK purpose-built stock to around 549,00.
Knight Frank said the sector has reported growth of 37% since 2014, from £30.9bn to £42.5bn, making student property one of the fastest growing asset classes in the UK property market. In addition, rental growth was predicted at 2.5% next year.
The property specialists expect investors to build upon newly acquired portfolios and overseas investors to also enter the market after tracking the sector for opportunities.
Rachel Pengilley, Partner of the Knight Frank Student Property Team, said: "As our sector continues to mature, and becomes increasingly recognised for its resilience in uncertain times, we anticipate continued appetite from global capital next year. As we look to 2017, rental growth, strong demand from domestic and international students and a healthy development pipeline are set to be the defining factors in the sector's success.
"We expect to see capital from all four corners of the globe looking to invest in UK and wider European student accommodation."