November 29, 2018
Luxury Student Living – The Changing face of student property
Property investors need to be savvy when determining their next investment and ensure they are aware of emerging trends and explore new market opportunities. One of the most popular new markets increasingly catching the attention of discerning property investors is luxury student accommodation. Student accommodation originally held negative connotations as images of cramped communal spaces and dingy damp walls would spring to mind. However, the modern-day student has far higher expectations of what people have become used to in the past, leaving investors keen to keep up with demands as they surface and evolve. Student accommodation stands as a unique asset class standing resilient in the era of an unpredictable economy. Fuelled by growing student numbers, the demand for housing is always present. In fact, the demand is getting stronger.
Due to enormous demand, pressure is placed on the student sector to produce luxury apartments and studios. New developments feature on site gyms, coffee shops and rooftop gardens. Modern décor, high tech appliances and manicured lawns provide students with a higher standard of living that many are prepared to pay a premium for. Luxury developments cater for every student’s needs and provide a home from home living during their studies.
The number of students living in purpose-built student accommodation has risen from around 46,000 in 2007 to 102,000 in 2015. Dingy house shares are a thing of the past as students desire a new and improved way of living. Student numbers have soared over recent years, both from those living in the UK and overseas and has also lead to a change in demand for a different approach to student accommodation. Fully furnished rooms provide students with their own space and privacy. Extra amenities throughout the build allow students the choice of socialising, without being forced into shared housing.
Tuition fees for British students have dramatically increased and the cost for overseas students has significantly risen, therefore and extra spend of accommodation on top of tuition fees isn’t as much of an unreachable ask. Students have concluded that living in better accommodation has given them a boost in their learning providing an academic advantage. One student who spoke to The Guardian said, “It looks lush and the atmosphere is relaxing, which helps me to focus and feel I’m on top of things. I think my grades will improve this year. I feel mentally stable, and instead of cleaning up my housemates’ mess, I immediately start studying when I get home.”
The job market after graduation is becoming more competitive therefore with such high expectations from universities, this advantage often justifies the higher cost. Student apartments of studios are an appealing investment opportunity for investors as they secure strong yields due to the incessant demand. Property investment specialists like RW Invest have a diverse range of buy to let opportunities within PBSA which are ideal for the 21st century student. The UK higher education sector is one of the most thriving and lucrative parts of the UK economy and PBSA provides a plethora of opportunities to capitalise on this burgeoning market.