London Road, Lancashire, Preston PR11
Ref No: KE015-LI-SA186
GREAT investment RETURNS 8% assured net Returns for 5 yesrs PURPOSE BUILT STUDENT ACCOMMODATION
Prices from GBP 58,295 - £96,890 · 8% assured net return for 5 years · 4% interest paid on deposits until completion (Sep 2018)
· 50% assured finance option · Fully managed · Full title deed on 125 year lease · Completion Sep 2018 · Experienced developer and construction partners · Specialist rental management
Purpose Built Student Accommodation (PBSA) offers lucrative investment returns. While many assets in alternative industry sectors are underperforming, PBSA has grown into the top performing asset in the UK over the last 3 years, according to Savills.
Globally, investment in student housing has risen from $3.4 billion to $7.2 billion between 2007 and 2013. Although it is mostly institutional investors that have led worldwide investment (accounting for more than 57% in terms of overall sales volume), the private sector is claiming an ever-larger share of the market.
On the world stage the higher education sector is currently being valued at approximately $164 billion, and predictions are that this figure will reach $200 billion in the next 10 years. Specifically, in terms of international students domiciled in foreign countries while they study, their numbers during the next decade are expected to reach 3.9 million. In the UK, this population has doubled in size in the last ten years and Knight Frank predicts growth of up to 20% over the next 5 years.
RELIABLE HIGH RETURNS
Purpose Built Student Accommodation, rather than converted premises, offers investors reliable earning potential. Even though the rental contracts are relatively short-lived, these properties are always in high demand and are currently still woefully undersupplied. With international student numbers expected to continue growing alongside a limited number of new PBSA developments in the pipeline, PBSAs are expected to remain a lucrative investment option for the foreseeable future.
As far as the predicted increase in mobile international students is concerned, we are seeing more and more students looking for luxury accommodation. The student property sector, which traditionally has focused its attention on domestic students, is lagging behind as regards gearing up for the larger number of more discerning international students.