The United Kingdom has always been known for its exemplary quality of education and thus is sought after by students who incline to pursue higher education. However, since the past two decades, the number of students in the UK universities has seen remarkable growth, and for them, it is no longer about the education only but accommodation too. This has led to some major investments in student property developments around the country. So, what are some of the major factors that are affecting these investments? Let us take a quick look at them.
Rising trend of higher education
As per the report issued by CAGR, Compound Annual Growth Rate, the number of students in UK universities is growing at an annual rate of 1.8% with the year 2016 only registering over 1.8 million students in the country. Moreover, with the government now offering student loans for master programs and removing caps on the number of students in the UK, the competition has gone fierce. Thus, the higher the number of students, the higher the need for suitable accommodation.
It is all about preference
If given a choice, a student, especially the one who is in the city looking for a higher education degree program, would choose to invest in a proper development rather than renting a private accommodation or living off student society provided housing solutions. The investments that focus more on the needs of the students by providing easy access to universities, cities and other social places will always be given preference and bring quick returns.
The demand exceeds the supply
There are more than 400,000 non-UK students in the universities at the moment. It is only logical to assume that each one of them would demand an accommodation solution well-suited for their needs. This number of international students is expected to double by 2025 creating an even bigger gap in the demand and supply curve of the market. This imbalance goes in favor of the demand of course and thus has successfully attracted initiation of major student accommodation plans and investments in the country. It has been researched that in the year 2017, transactions of over £ 4.6 billion, higher than what was logged for 2016, were recorded for student accommodation in the country. This number also included noteworthy investments from many international sources.
The needs are changing
The students today, especially the ones studying away from home, are not willing to make do with whatever options are available to them. The demand for purpose-built housing students that are close to the well-reputed universities is increasing. This demand is further triggered by the universities’ own accommodation solutions failing to handle the growing number of students anymore.
All these factors have created a huge opportunity for investors in this lucrative emerging market. If you are looking for good investment opportunities around Manchester or other cities that need promising student accommodation solutions, then RWinvest is the name you need to be looking into. With 14 years of experience to back them up, they sure have what it takes to provide you with good student property investment opportunities.