PBSA investment reaches £2bn in H1

Investors spent £656m in the PBSA sector in the second quarter of this year, taking total spend for 2021 so far to nearly £2bn, revealed Knight Frank.


Although overall investment is lower compared to the £5bn spent in the same period in 2020 — £4.66bn of that came from Blackstone’s acquisition of the IQ portfolio — cumulative deal volumes this year up to June were 47% higher than last year, and 4% more than in 2019.

This highlights investor’s confidence in the sector’s ability to deliver long-term, stable income streams.

It also reflects a wider pivot which has taken place over the last 18 months from institutional investors towards residential assets across all age groups.

According to Knight Frank, rising student numbers and ongoing low supply ratios in many university cities are also driving investor demand for PBSA.

Overall, June deadline data points to a 4.5% increase in applications year-on-year, driven by a 7.3% boost in UK applicants and a 14.4% surge in non-EU students.

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