The UK is host to some of the most sought-after universities in the world. As international student numbers soar, so does the need for high-end student accommodation. Luke Fitzsimmons , Marketing Manager at Experience Invest outlines the investment opportunity this growth sector brings
Over the past five years, purpose-built student property has become one of the most lucrative asset classes in the UK.
With billions of pounds invested every year by UK and overseas investors, certain locations, particularly in the north of England, have emerged as market leaders offering investors rental returns unrivalled by traditional property sectors.
Driven by an undersupply of rooms and a rapid rise in university applications, Newcastle is a highly profitable location for student property investment. The city is home to two world-renowned universities, including a prestigious Russell Group institution.
Between 2000 and 2015, the number of students at Newcastle University increased by 70%, while Northumbria University saw student numbers rise by 110%. As of 2018 there are 50,000 students in Newcastle, with international students accounting for 15% of people studying in the city.
This student population growth has created a 64% shortfall IN purpose-built or university operated beds. This in turn, has pushed rental prices up, with a record 4% increase last year, more than double the inflation period, making the city highly profitable for student property investors.
The team at Experience Invest are helping developers to tap into in this lucrative market, with one upcoming project, Opto Student Newcastle, a purpose-built property investment located in the most desirable riverside area of the city centre.
Designed to meet the demand for high-end student accommodation, the development will feature some of the largest and most luxurious self-contained studio apartments on the market and will be delivered fully furnished and ready to let.
The building will also feature facilities unrivalled on the market, including an on-site gym, games room, cinema, and a two-storey outhouse for events. For security, a secure fob lock system, 24/7 CCTV and an on-site management will be in place.
But the central cog in the master plan is that this fully managed UK property investment offers a way for investors to offset the cost of their child’s education through receiving an income from a UK student property.
The UK is a popular location for studying and many parents understand the cost of sending their children abroad to study. As a solution, Opto Student Newcastle provides a passive income of 8% NET per annum, assured for 5 years.
Designed for overseas investors, a flexible payment plan is in place throughout construction. Now is a great time for international investors to capitalise on the current favourable exchange rates against the pound by investing a UK property.
To find out more about Opto Student Newcastle and alternative high-end student accommodation schemes across the UK, visit http://www.experienceinvest.com/opto/
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