Student property investors ‘should take need and demand approach’
Investors in student accommodation should not get blinkered by cities with multiple universities, but take a more local ‘need and demand’ approach.
Peter Mindenhall, researcher at IPINGlobal.com, said many investors jump into locations like London where there a multiple universities, or cities like Oxford and Cambridge, where there are well regarded institutions.
However, he advised that they should take a much more considered approach on issues “like the quality and value for money in the students’ eyes”.
Key features students look out for are high-speed internet, proximity to campus, security and transport links, and demand for these types of property will be higher.
Mr Mindenhall added: “High-level and high-volume university regions are invariably also high-priced. By focusing on a more specific ‘need and demand’ level you are more likely to find university property that fits your own investment agenda.”
His comments come after Countrywide reported a significant increase in private tenants last year. A total of 275,000 new tenants registered for private rental accommodation, a 24 per cent increase on 2010.
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