The student property market has grown considerably over the past few years as investors have spent a lot of money on the sector. It has gone from a small sector into one of the most lucrative sectors in a short space of time.
Over 3 billion was spent on student property in 2013 and 2014, but 2015 saw the sector explode as investment headed towards the 6 billion mark. It has now been reported that 85% of second year undergraduates are now opting to live in purpose-built student homes that comes with everything they need. CBRE statistics show that student accommodation has occupancy rates of around 99% which is why people decide to invest in this sector.
As demand is high and student numbers are expected to grow each year, the sector is likely to see even more investment making 2015 look quite insignificant. However, where should investors look to invest?
Manchester is a simple choice because in the last few years the city has undergone a complete transformation. Many media companies have moved north and the government are injecting a lot of money into the city. This is driving more and more people there which makes it a real hive of activity when it comes to students.
Currently, Manchester has more students than any other city throughout Europe with 85,000 spread across four universities. This offers investors assurance that property in the area will be in high demand making it one of the most popular areas in the country.
On the whole prices are still low while yields are high and this means that 2016 could be the right time to invest in the student investment property sector in Manchester.
Liverpool has seen huge changes in the last few years and it too has seen a large number of new build student properties entering the market. This makes it an area that investors should consider investing in as the next few years and beyond could be exciting.
The city comes with an impressive nightlife and this is likely to draw in students. The city already boasts more than 50,000 students making it one of the most popular universities in the world
Birmingham has a lot to offer to students which means investors benefit immensely. Birmingham has a diverse nature and this makes it possible with people from many different locations. There are now 65,000 students living in Birmingham which means that demand is high as students want high quality, contemporary accommodation in the trendier areas of the city.
Brighton has grown to the point where it is now classed as crucial location for investors. It has two universities and numbers of students have grown in recent years. In the same way as Birmingham, many London based students have looked to find a good education but also am easy way of life, which is something they will get on the south coast.
Brighton has a lot to offer when it comes to investing in traditional properties. Accommodation which is located alongside the beach is popular in its own way. They are different and this is why clever investors can really benefit.