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Student property investors ‘should target new builds’

February 22nd, 2012

Investors in student property should seek out new builds to get the greatest return on their investment, according to IPINGlobal.

An increase in the rental regulations and requirements related to “traditional converted semis” means these are “falling by the wayside” as an investment prospect, Peter Mindenhall, researcher at IPINGlobal.com, said.

Mr Mindenhall said older buildings located on campus are also in need of some upgrading, reducing their attractiveness, and making new builds the main target for investors in student accommodation.

“New-build developments with planning approval and support from the university and local council are the primary things to consider. Some developers will also include management services or companies which will appeal to more active investors,” he explained.

Knight Knox International recently claimed that student accommodation is now moving to a more commercial offering, as buyers are attracted by rental yields of 6 to 6.5 per cent.

Domestic and overseas buyers were both said to be focusing on the accommodation desired by “a more consumer-focused student”.

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