Property investment analysts at Knight Knox International say demand for student accommodation is strong despite a 7% drop in applications at universities. Conflicting reports stated that demand was down, likely in response to the drop in applications, but experts say the drop made little difference in volume. Market experts say that another cause for the contrary reports may be that more students are demanding more quality for their money and back up the assertion by noting that demand for quality accommodations has not slowed and provides greater returns on average. For more on this continue reading the following article from Property Wire.
Despite reports that rents are slowing in the student accommodation sector it is still in demand as one of the strongest performing real estate investment trends, it is claimed.
According to Manchester based property investment specialist Knight Knox International the dip in applications for the new term this month is unlikely to impact the sector because demand still outweighs availability. It points out that the student property sector has been one of the strongest performing asset classes of recent years due to an expanding student population, relatively short void periods and higher than average yields, particularly in regional cities and towns.
The student accommodation specialist also points out that the 7% drop in applications was anticipated by the universities themselves in the wake of the fees hike and by developers. The demand for high quality, private student property has not abated.
‘Today’s students are definitely more commercially aware than ever before and expect a higher quality of accommodation for their money,’ said Martin Copeland, sales director at Knight Knox International.
‘Over the past 18 months we have sold out 10 developments in the student accommodation market. At least four of these developments are fully operational and generating an immediate income for our investors, allowing us to move forward and source new projects,’ he added.
The firm has just launched its latest student accommodation project, Bard House, in the heart of Nottingham and within walking distance of the university. It says that investors can expect assured net yields of 9.2% for the first three years, in a location that receives over 30,000 students annually.
It is a former university building on the doorstep of the Nottingham Trent University, making it the perfect location for students in the area with 47 double and nine single furnished studios with access to a range of communal facilities including a laundry, gym, common room and entertainment suite.
This article was republished with permission from Property Wire.