The average total return for institutional student property in the year to September 2012 was 9.2 per cent across the England and Wales, with an average rise in capital values of nearly 3 per cent. The regions edged ahead of London, offering returns of 9.7 per cent, while investors in London received returns of 8.7 per cent.
Rod Thomas, Director of Axis Property Investment comments: “Student property remains the best UK property investment sector when compared with other residential and commercial property. Furthermore, long-term trends and decades of under supply have resulted in favourable conditions for those wishing to enter the market.
“Student property investment has grown in the past few years because of a number of factors including an undersupply of quality stock; low void periods; and stable yields. Today, students want increased levels of comfort and better facilities than was the norm years ago. By and large, they do not want to live in low quality digs and are prepared to pay more in order to spend arguably the happiest years if their lives in an environment conducive to their studies and lifestyle.
“The student property sector is worth approximately £20 billion – and is rising rapidly. UK student accommodation performed well over the last five years, showing average annual total returns outperforming many commercial property asset classes. Investment into this sector has boomed and many investors recognise the attractive returns provided by student property. Indeed, there are some very attractive investment opportunities with developers in the regions that are giving excellent returns.”
CBRE reported that last year, student housing strongly outperformed other property asset classes delivering total returns of 9.6 per cent for investors, compared with 4.5 per cent for all office properties and 2.2 per cent for retail.
Axis Property Investment has helped investors acquire more than 1,000 properties in the UK and internationally over the last eight years. Axis Property Investment strategies have been especially designed to deliver the highest returns in the shortest timescales, with the lowest capital and time requirements on the part of investors. Whether investors are looking for a combination of income and growth, Axis can help.