Student housing is gigantic, global, and growing. Savills states that 2016 saw US$16.4 billion invested into global student housing. The United Kingdom and the United States traditionally lead the Purpose-Built Student Housing (PBSH) sector. In Europe, 80% of PBSH is focused in the U.K.
And, although I predict the U.K. and the States will continue to reign for some time to come, other European countries are starting to sniff around their thrones.
The U.K.’s Property And University Markets
I’ll be focusing on the U.K. Full disclosure: I am a tea-gulping Brit—but that’s not why I’m bullish about this market. The numbers go beyond patriotism.
London typically sees a 3.75% net yield on PBSH, and other parts of the country hit about 4.5%. To put those percentages into perspective, in London 3.75% is only 0.25% less than grade-A commercial office returns.
Why Compare Student Housing To Commercial Property, As Opposed To Other Residential Property? …
Investing In The U.K. Student Housing Sector (PBSH)Read More »