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Student Accommodation, Hotels and Care Homes to generate more than £14bn in 2016

A record £14.3 billion is expected to be invested in alternative property investments over the course of 2016, according to a new report.

UK Alternative Property Investments

A record £14.3 billion is expected to be invested in alternative property investments over the course of 2016, according to a new report.

Research from Knight Frank has predicted that alternative property sectors such as student accommodation, care homes and hotel rooms are set to see increased investment from purchasers in 2016.


The last decade has seen investment of more than £46 billion in alternative property sectors, with 2015 achieving a new record high of £13bn in 2015. The report indicates that 2016 could see a new record high for the sector, with investment increasing by 10%.


The gradual rise of the alternative asset classes from niche investments to a multi-billion pound investment industry has been driven by a desire for a more stable, long term income flow from investors, Knight Frank said.


Last year, more than £6 billion was invested into the UK’s student accommodation market, more than doubling the previous record in 2014, as investors looked towards the supply and demand imbalance as an investment opportunity.


Elsewhere in the market, Knight Frank said it expects care homes to become an increasingly attractive prospect for investors in the UK throughout 2016, as more care homes are built addressing the country’s need for new stock in the private healthcare sector.


The hotel sector is expected to see a continuation of supply through construction, but also through the division of significant portfolios in the UK.


The head of specialist property investment at Knight Frank, Shaun Roy, said: ‘The market has changed. Investors’ primary focus now is the longevity and durability of their income return and the specialist sectors are ideally suited to offer this style of investment product to the market.’

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