Student Property attracts several billion worth of investment in 2016

A little more than 4,500 dedicated student housing units were developed and constructed during 2016, according to figures released from Barbour ABI.

“We are noting that inward investment to the purpose-build student property sector is now at a five year high with plenty more room for growth” adds Tom Roberts of FJP Investment.

With a 26% year-on-year uplift in comparison to 2016 the student market makes up a big portion of new property developments here in the UK.

It is worth mentioning that in the first quarter of 2017 there was exactly 2,117 student accommodation units commissioned. Developers are launching such projects because there is significant demand from their UK and overseas investors.

More students than ever are attending university and demand for high end luxury student accommodation is sky high, investors have an appetite for this type of investment and the demand is expected to increase throughout 2016 and well into 2017.

Ever since we had the removal of the cap that was placed on numbers able to attend universities we have seen a jump in the number of student bedrooms being commissioned. We are seeing universities acting in a pro-active manner to increase the number of bedrooms to meet with the increase in enrolments over the years to come.

Property developers are realising that with investors keen to invest in the sector, the rollout of new developments is a priority to keep up with market demands.

Purpose-built student accommodation has always been an attraction for big international investors aiming to make a solid return in the UK market. Just last week we have seen the arrival of Singapore’s Temasek with their noteworthy purchase of £417 million worth of units.

With the government revising their estimates on the number of expected students by 2020, an additional 200,000 more people are expected to study and require accommodation. This revision is due to the change in policy towards capping university student numbers.

With more than £6 billion invested instudent property investmentsthere is little doubt that 2016 is to be a bumper year for the hottest sub sector of the UK property market.

FJP Investment is a team of investment specialists sourcing a wide range of investment opportunities both in the UK and overseas. Notable launches include the .