Over the recent years, investing in student housing has emerged as a pretty advantageous prospect when it comes to real estate. In fact, investing in student accommodation is one of the fastest-growing strategies that both new and experienced investors have had success within the last few years. In fact, it has been among the strongest performing asset class over all other forms of commercial investment in the last few years over multiple nations. Choosing to invest in properties developed by reliable and well-established companies like Nelson Partners will especially be a good move for people.
Investing in student accommodation has become a particularly attractive prospect for both new and experienced investors in recent years. The dynamics of this investment does provide people with a greater assurance of income from rent. There is a large and vastly growing student population in many countries across the world, including the United States, which the universities of the nation cannot keep up with. This has led to the rise in the demand for student housing units developed by companies like Nelson Partners.
There are many factors due to which student housing investments have become a popular prospect today. Here are a few of them:
- Rising student numbers: Over the last two decades, many countries, especially the developed ones, have witnessed a huge increase in the number of students going for higher education. Traditionally, university education used to be largely meant for the elite or extremely intelligent ones. Today, however, going to college or university has become extremely common worldwide. With the growing prominence of higher education, the demand for student accommodation has surged up substantially and is expected to remain consistently high. Moreover even with the rising university tuition fees, higher education and the experience of moving away is extremely important for many young people. However, many universities do not have enough on-campus accommodation arrangements to cater to all their students. In this situation, investing in student accommodation becomes an asset that can be pretty valuable and useful for both the student tenant and the investor.
- The popularity of purpose-built accommodation: Purpose-built student housing has become extremely popular today among modern students. Most of them prefer such private accommodation options due to the opportunities for socialization and relaxation they provide. Owing to its growing popularity, the decision of investing in purpose-built student accommodation has emerged as a pretty worthwhile and profitable investment for experienced and new property investors. A lot of dependable property developers are engaged in developing and managing such projects, Nelson Partners being one of them.
Student housing projects usually have a higher return on yield than a number of other property investment strategies. These units are only unoccupied during the transition period subsequent to the end of an academic year and the start of the other. This basically means that there is a greater chance of rental incomes due to fewer void periods in such properties.