Investment Watch: Student property investment goes global
Student property investment went global in February 2014, according to new research from TheMoveChannel.com. The property portal´s Investment Watch report reveals that student housing continues to dominate activity on the site, with buyers now turning to opportunities in the USA as well as UK.
Student property in Florida received the highest number of enquiries on TheMoveChannel.com in February 2014, the first time this has ever happened. The tenanted condos in Tallahassee are located five minutes away from two universities and start from $48,900, offering guaranteed rental returns of 8.5 per cent, enough to attract over twice as many enquiries as a student property listing in the UK.
Bolton´s The Cube development has been a subject of consistent interest from buyers, appearing in two of the past three months´ top 10 most popular listings. The units, priced at £39,950 and advertising NET yields of 10 per cent, offer a combination of low cost and high returns that is typical of the student housing sector.
The second most popular investment in February featured buy-to-let apartments in Manchester. The luxury three-bedroom flats in the city´s Trafford Mill development cost £115,000 for cash buyers, with 8 per cent NET annual rental returns assured for one year. Confidence in the UK´s recovering real estate also saw buyers turn to Wales, where a £25,000 hotel room assured 10 per cent returns for 10 years.
Investors were willing to look outside of the UK for income, though, with a hotel room in Picardie receiving the third highest number of enquiries. This is the second time in five months that the discounted French resort has appeared in TheMoveChannel.com´s top 10 listings, a sign that investors are heading back to France thanks to attractive prices as well as accessible financing.
The Bahamas remains popular among buyers too, with January´s number one listing – a building plot on Long Island – sliding to sixth place in February. Demand for alternative investments is also strong, driven by two oil investments in the bottom half of the Investment Watch top 10. Both are priced below £7,000, an indicator of continued buyer interest in low cost opportunities.
The student housing sector remains the most popular overall, providing the affordability of alternative products but with the reliability of real estate investment. A Bradford project (seventh place) offers 10 per cent returns for £55,000 and another UK student development (ninth place) promises 10 cent returns for £44,950, taking the total number of student property listings in the top 10 to four.
Florida´s student condos generated the biggest response, though. With the US property market recovering over the past 12 months, the demand for investing in student property at a much cheaper cost proves that the sector´s strength is not just limited to the UK.
Director Dan Johnson comments: “Student property continues to be the most widely sought-after asset on TheMoveChannel.com. Investors are increasingly concentrated on affordable opportunities, such as alternative products, that can deliver strong returns. The student property sector combines that affordability with reliability unmatched by other assets – it is no surprise that, according to CBRE, investment in UK student housing totalled more than £2 billion in 2013 for the second year in a row!
“While the UK property market is booming, though, demand for accommodation at universities is universal. In America, where house prices are more affordable and the economic recovery is boosting confidence, the sector is even more attractive. This is the first time a student property in Florida has been listed on TheMoveChannel.com. The overwhelming response shows that investors are not afraid to go back to school, no matter where that school might be.”
Click here to see the 10 most popular property listings in February 2014.
Notes to Editors
Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with more than 800,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.
The website address is http://www.TheMoveChannel.com and the office address is 24 Jack’s Place, Corbet Place, Spitalfields, London, E1 6NN.
Contact Dan Johnson on 0207 952 7650 for further information.