Student

UK student accommodation capital values continue to rise



UK student accommodation capital values have increased by 6.5% year-on-year to September 2018, according to the latest research.

The CBRE student accommodation index revealed that this figure was up on the 4.5% growth recorded in the year to September 2017.

On a gross and net basis, rents have increased 3% and 3.4% respectively.

The index is disaggregated into ‘central London’ and ‘regional’ geographies, with the latter being further split into super prime, prime and secondary.

Student accommodation in central London outperformed regional by a wide margin.

Driven by capital value growth of 12.4%, central London student accommodation annual total returns hit 17.5% for the year to September 2018, compared with 14.2% for the previous 12 months.

Regional student accommodation total returns to September 2018 reached 10.5%, with capital growth of 4.5%.

cbre
 
“UK student accommodation is now firmly established as a mainstream investment sector,” said Jo Winchester, head of student accommodation at CBRE. 

“Investors will find the increasingly sophisticated raft of influences on performance highlighted by this index – including location, asset scale, university rankings, applications and distance to university – very informative.”


Sign up to our newsletter to receive more news like this story

I accept that by joining the DFT mailing list, I will receive relevant news and promotional material via DFT on behalf of its partners and advertisers. Your data will not be passed on to any third party.
No, thanks, just the news please.



Leave a comment