Benefits Of Investing: Because more and more investors are looking for student accommodation. Last year proved to be the busiest year for student housing investment activities. Especially in the third and fourth quarters of 2021. Based on current market activity and investor interest, 2022 is set to be even stronger.
Importance of investment for students
While the return of students to colleges and universities is boosting the student housing industry. Solid fundamentals and rewards are playing a huge role in this record-breaking business.
Before the epidemic, 2020 was supposed to be one of the largest years of activity in history. And Benefits Of Investing in student housing. However, COVID-19 has set aside many activities, in part. out of fear that distance learning will negatively impact the region.
Despite many setbacks, the real estate class performed very well. As students chose to live in close-to-campus housing with friends, which kept rent collection high.
Investor Market for students investing
At the beginning of 2020, the maximum rate between student accommodation and traditional multi-accommodation was around 25 basis points. In the fourth quarter of that year, the rate rose to around 80 basis points.
Given this spread, student housing is attracting interest not only from traditional investment groups but also from new investors looking to enter the market.
These new entrants range from traditional multi-dwelling investors to savvy commercial real estate investors who have historically focused on other types of products and are now looking for investment opportunities here.
Benefits of Investing in student accommodation
In 2020 and 2021, only 2.3% and 2.2% of the shares were delivered, demonstrating that COVID-19 had a very limited impact on the distribution of student housing.
The capital market has never been stronger and there will be a lot of equity and debt as a result of new developments and exchange rates. As a result, projects are moving forward despite rising construction costs.
Student Investors for college and universities
Benefits Of Investing: Over the past 12 months, Level 1 universities have become increasingly interested in nearby student accommodation opportunities as the business class continues to be extremely flexible.
At the same time, we see non-traditional student investors acquiring student assets in level 2 and level 3 colleges because they offer attractive foundations and high returns compared to other asset classes.