Uk Student Accommodation Investment Market Driven By Overseas Investors
The United Kingdom property market is broadly considered a 'safe haven' by a lot
of wealthy foreign investors, because of the solid property ownership laws and the status of owning a property in the UK.
However out of all the various property investment opportunities in the UK student accommodation has materialised as a top pick with foreign investors seeking security, high occupancy and strong yields.
Another reason why foreign investors are interested in UK student accommodation investment is due to the fact that they are well aware of the importance of a good education and that many students from their own countries go to United Kingdom universities.
The United Kingdom attracts the largest amount of foreign students than any other country in the world, apart from Australia. The United Kingdom is forecast to see an increase of 30,000 international students enrolling on UK university courses by 2020, the only country with more than that number is Australia with 50,000. Source ukcisa.org.uk
The biggest group of foreign students studying in the UK are from non-EU countries, Total non-UK EU students was 130,115 compared to 298,110 non-EU students for the 2010 - 11 academic year. Source ukcisa.org.uk UK Council for International Student affairs
The non-EU countries with the highest number of students coming to the UK are China 67,325, India 39,090, and Nigeria, with 17,585, followed by the USA, Malaysia and Hong Kong with 15,555, 13,900, and 10,440 respectively. Other countries listed include Saudi Arabia, Pakistan, Thailand, and Canada. notably we can see most of the students are from Asia. These numbers are increasing; Data released by UCAS regarding the 2012 January 15th deadline shows that there has been a 13.7% increase in applications from Non-EU overseas students.
According to Knight Frank the UK is in a strong position to strengthen its place as one of the world's leading countries to study, especially when it has five of the world top 20 universities. "A UK university education continues to be held in high esteem around the world and this demand is set to expand exponentially in line with global wealth generation." - Knight Frank, Student Property Report 2011
Wealthy Overseas Investors
Students from Non-EU countries studying in the UK are often from the more affluent families as generally compared to their own countries the education and the cost of living in the UK is a lot more expensive.
That said it is also the wealthy families which are likely to be investors and more so the higher net worth investors who have enough funds to invest overseas. So it would make sense for them to consider investing where their relatives and or friends are studying.
This is shown in the fact that the customer base for new purpose built student accommodation in the UK has a very high proportion of foreign students.
Jerald Solis Business Development Manager for Experience International, one of the leaders in UK Student property investment market commented.
"A growing amount of foreign investors from Asian counties including China, Hong Kong, Singapore, Malaysia, and India our investing in our UK student property investment opportunities. This might be partly due to the fact that many of the projects we have sold and currently sell are likely to house a high amount of resident students from Asia "
Experience International have a range of student rooms for sale in purpose built developments in London, Liverpool, and Bournemouth which all offer investors around 10% NET rental income per year.
Strong Asset Class
The popularity of student property among investors is ultimately driven by consistent occupancy rates of 99% or higher. The strong demand for purpose-build student accommodation underpins rental growth with a total increase of 34% recorded between 2005 and 2010. Source: UCAS
Student accommodation is a strong performing asset class and some would say almost unbeatable in terms of rental returns as occupancy is almost at 100% and Net yields are generally around 10%.
Also experts would say that student property investment is recession proof. As long as we have universities their will be students that require accommodation and during recessions a lot of people choose to go back into education to improve their employment and career prospects, people simply take student loans and grants to fund the expense.
"Student Room Investment outperformed every other commercial property class and delivered consistent returns throughout the economic downturn," James Pullan, Head of Student Property at Knight Frank commented.
Summary
The research would indicate that as an increasing number of foreign students are coming to the UK to study so are overseas investors from the same countries investing into the UK's student property market.
These investors are attracted by the status of UK Higher Education and owning property in the UK in general. As well as the high occupancy levels and in turn strong rental income that are being offers by specialist purpose built student property projects alongside the security provided by UK property law.
Therefore we can say that the UK accommodation property investment market is in fact partly being influenced by both overseas students and investors.
Copyright (c) 2012 Experience International
by: Luke Fitzy
Simple Guide In Finding Accommodation Choose From Budget Accommodation In Central London To Enjoy Your Stay Learn About Discount Accommodation London Offers London Accommodation Are Perfect Enough For An Enjoyable Stay Accommodation & Transportation In Chigwell Different Kinds Of Accommodation Facilities In Brazil Ltc Tour Europe Best Suited Comfortable Accommodation In Europe Simple Tips In Finding An Ideal Accommodation Get The Best Deals On Accommodation In Heathrow Delhi Budget Accommodation Benefits Of Getting Cheap Accommodations Choosing The Right Accommodation For Your Next Trip Make Your Holiday Incredible With Your Stay In Discount Accommodation In London
Uk Student Accommodation Investment Market Driven By Overseas Investors Anaheim