A PwC survey showed that many investors are confident on the growth prospects of investing in student accommodation properties in both countries. On the other hand, an analysis by Savills found that student housing properties in continental Europe amounted to a total of £1.45 billion as of the second quarter this year.
Properties that offer accommodation for students in London, U.K. and Germany are among the popular investment destinations in Europe. The analysis also revealed that the U.K. and U.S. markets took the lion’s share of a majority of student property investments between January and June 2016. Investments in the U.K. student accommodation sector reached £1.1 billion in the same period.
Germany or the U.K.?
Investing in German and British student housing provide different benefits. Stable investment growth defines the German market, although the U.K. lures over 10 times more investments than the former.
Marcus Roberts, Savills director of student investment and development, said that investors are also looking into other regions with a significant lack of supply in student housing. These countries include Austria, Ireland, the Netherlands, Italy and Spain, according to Roberts.
France is also one of the other emerging markets with £310 million of investments flowing into student residences between January and August 2016.
The international student population continues to increase worldwide with the number doubling to four million over the last 10 years. The statistics are expected to grow twice once more to eight million students by 2025. Investors exploring other markets will affect the markets in the U.K. and Germany, but the former’s matured market may present some cushion.
The cost of student accommodation in the U.K., especially in London, can be costly. Some companies, however, are experts in helping you find affordable ones — even young professionals in the city seek refuge in these properties.