CBRE announce record Q1 for UK student room investment

CBRE’s Student Housing Market View Q1 2012 has revealed that over £246 million (297.6 million Euros) of student room investment deals were transacted in the first quarter of this year.

Comparing figures from the previous year – when investment in student property increase by around 50% to £1.1 billion – the first quarter results from 2012 are positive for the sector, with signs pointing that student room investment will continue to grow.

The property specialists also stated that despite a dip in the number of UCAS applications, the Higher Education sector is still oversubscribed and predict that the student population will not fall as a result of the increase in tuition fees.

This year UCAS has reported 5.2% fewer applications for degree courses and 7.4% decline in total applications for the 2012/2013 academic year.

Applications from students from the European Union has seen a notable decrease, however there has been a 12% increase in applications from non-EU countries. Applications from the Far East have risen by 10%, applications from students in Hong Kong have increased by 37% and applications from Australasia have also increased by 15%.

To outline the extent of applicant over-subscription, CBRE has stated that in September 2011 700,160 students applied for spaces on courses however only 492,030 students were accepted. Roughly 30% of applicants missed out on a university place.
It is clear that the demand for student room investment remains high and will remain high due to the continual demand for university places.

To discover the best locations in the UK for student room investment, contact Experience International on 0207 321 5858 or email enquires@experience-international.co.uk.

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