The student accommodation market in Glasgow is poised to receive a significant influx of property investment. Currently ranked 3rd in the UK by the International Student Barometer, the city has a chronic lack of accommodation, with only 9,395 purpose built beds for 52,255 full time students. This makes the city positively full of investment opportunity.
Ray Withers, chief executive of multi award-winning property investment agency Property Frontiers, stated: "As a rapidly growing university city, attracting both domestic and increasingly international students, the need for purpose built student accommodation is higher than ever. CBRE states that the undersupply could be as high as nine full time students for every bed space and despite having 2,595 beds in the pipeline, demand far outstrips supply and it is this fundamental imbalance which should drive prices consistently higher."
Property Frontiers has now refurbished Central House in the centre of Glasgow, offering high-calibre studios at rent of GBP 125 per week. This is likely to be one of the first projects of many, with UK student accommodation continuing to attract investors from across the globe. CBRE has reported that some GBP 2 million has already been ploughed into the sector so far this year.
Not only is student accommodation becoming the subject of greater investment, it is also increasingly being shaped by those who will be using it. Mr Withers explained that developers are listening to the needs of students and delivering the types of properties they want, such as single rooms with en suites as standard.
Central House is one of these developments and also caters for the communal needs of students, offering entertainment and games rooms, a landscaped outdoor terrace, laundry rooms, a concierge and CCTV. Broadband is also supplied as standard throughout the complex. Property Frontiers claims the units offer a net yield of 9.2 per cent for three years and full management by the developer. The apartments have a value of GBP 53,500, with a deposit required of GBP 31,750 and over.
- Saturday 17 November 2012