Investors in student rental housing hunt for new growth pastures in mainland Europe
New opportunities in student housing beckon in continental Europe, while the UK and the US still rank as the top investment choices for most investors from Hong Kong
Investors in student housing properties are diversifying their portfolios into mainland Europe, with countries on the continent seeing a 21 per cent year-on-year growth in investment volumes as of the second quarter of 2016, according global property consultancy Savills.
Despite the strong pick up in mainland Europe, the UK and US markets still received the most investment into existing student housing assets in the first half at US$1.4 billion and US$5.4 billion respectively, it said.
As of the second quarter of 2016, year-on-year investment volumes of existing student housing stock grew by 82 per cent in the US, but fell by 64 per cent in the UK.
Marcus Roberts, director of student investment and development at Savills, said the US and UK student housing markets have dominated global investment in the last three years.
“But with the maturing of these markets, investors are looking to other areas which are suffering from a pressured housing supply, shortage of student accommodation and immature management solutions,” he said.
