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Student accommodation hits record high in 2014

After a year of record breaking months for the asset class, the UK’s student accommodation sector has amassed a record total of more than £2.37 billion worth of investments in 2014.

Increases in Demand for Student Accommodation

After a year of record breaking months for the asset class, the UK’s student accommodation sector has amassed a record total of more than £2.37 billion worth of investments in 2014.

This figure comes just a month after the news that the student accommodation sector achieved £2bn worth of investment for the third consecutive year, and demonstrates the ongoing interest that investors have in the sector.


Based on figures from leading property adviser CBRE, the £2.37bn total was achieved between January and November of this year, with December figures still to be added on to this total. This latest report reiterates the strong growth that student property has seen over the past two decades, as demand for purpose built student accommodation has grown.


The driving force behind the increase has been a shift in where the investments have been originating. Traditionally, student accommodation has been purchased by individual investors on a unit by unit basis, but increasingly, corporate and high net worth investors and fund have been purchasing blocks of student property.


Additionally, the removal of university place restrictions has seen more than 500,000 students enter the UK university system, driving demand for accommodation and helping to attract further investment.


There is now a wide range of buyers in the market, for developments of all sizes, with demand for student properties showing no sign of waning. A recent report by published by JLL predicts that investment in the UK’s real estate alternatives such as student housing will almost double by 2019.

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