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Student Property Investment to Reach £3bn in 2016

The student accommodation sector has been projected to have its second best year ever, according to a new report.

Student Accommodation to Generate £3bn in 2016

The student accommodation sector has been projected to have its second best year ever, according to a new report.

Property research firm, CBRE has forecasted a total investment of £3bn for the asset class by the end of 2016, with £2.7bn already achieved in the year to date.


Surpassing the £2.4bn generated in 2014, the continued performance of student accommodation in 2016 is indicative of its resilience following Brexit and of the strong market fundamentals inherent in the sector, says the firm.


Driven by increased interest from both Private Equity and Overseas property investors, CBRE said that this year’s transactions have seen a shift in the demographics purchasing in the asset class.


2015, which generated a record £5.6bn in sales transacted, was dominated by large scale portfolio investments from institutions, such as Canada Pension Plan Investment Board’s £1.44bn purchase of the Liberty Living Portfolio – with fewer investments occurring on a similar scale in 2016.


Commenting on the findings, CBRE said:


‘After a turbulent summer in the aftermath of the referendum, all indications so far are that the UK’s student accommodation sector is proving resilient to Brexit…


‘Although the institutional funds have not been active this year, consolidation of larger platforms and the appetite for indirect investment has meant that the sector players have dominated the market.’


CBRE’s update on the strong performance of student accommodation follows Rightmove’s growth projections that the UK’s residential market will acquire further momentum in 2017 despite Brexit fears.

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