Real estate is a very large market, offering properties and deals of different kinds and options. While all real estate investments guarantee higher returns, the percentage varies from time to time, depending on the property location, market economy and other related factors. However, in the past few years, a drastic shift in real estate has been observed as student lettings have become more popular.
The main reason behind this is because more students have started opting for under graduation courses and have begun taking admissions in top universities. Most universities do provide accommodation facilities but it is close to impossible to accommodate all students taking admission in their college. Thus, arises the need for student lettings in and around the university campus. In fact, universities are now using the student accommodation as part of the overall marketing plan in attracting international students.
Globalization is another factor that has contributed to the rapid growth of this real estate market. Each year millions of students travel to different countries in search of a better educational opportunity. This has lead to the potential need of a much bigger student lettings market and real estate professionals and property owners have taken full advantage of this opportunity.
According to statistics released by the Universities and Colleges Admission Service, the number of travelling student is predicted to double to eight million by 2025, with Britain set to attract more than the U.S.
Recognizing this need, real estate experts have shifted their focus to projects that provide accommodation for students. One of the biggest advantages of investing in such projects is that these accommodations don't require high-class amenities and hence, attract low investment. In spite of this, the property owner can expect high returns, even during recession. Contrary to this, other residential properties require good amenities and services in order to guarantee good returns, while in properties that provide student accommodation, the services and amenities are less but the rents are high. If any additional amenities are provided, property owners usually charge students extra, which again is beneficial for them. Returns of investments are faster in the student letting market, resulting in its further growth.
The demand for student lettings has led to the growth of many options for students as well. Students can now choose between renting a residential apartment, a paying guest or can even seek accommodation in a dormitory, which comes at a far lesser price. These accommodation options are available in different budget sizes and students have the freedom of choosing where they want to stay depending on their budget and requirement.
Another reason why the student lettings market has seen such rapid growth in such a short period is because university accommodation is usually more expensive. Moreover, college students value their freedom and hence, prefer private accommodations in order to stay away from the rules put down by the university.
The rapid growth of the Student Lettings Market is predicted to continue in large volumes as more students travel away from their homes for better career opportunities. Go Global Investments revealed in a press statement that while yields from Buy-to-Lets remains at a stagnant 6.1percent in the U.K., yields from student lettings have increased to anything between 7 to 9 percent net.
