Bali Property Blog

The Growth of the Student Accommodation Industry

The Growth of the Student Accommodation Industry

It is no surprise that student accommodation and housing has emerged to be the top and the best ranked asset in the US and the UK. This was established in the property market news showing the growth rising to a $200 billion industry that is thriving now. Investors are looking to cash in with many more investing in the industry to cater for the rising need of the student accommodation. There was a time when the student accommodation deal was looked at as an alternative property idea but has now become a major part of real estate with big investors coming in the game. The universities are bringing in more students as they expand their programs and as the students look for skill to make it in the job market. The conditions are getting tougher for the job situations requiring more credentials hence more students looking for a way into the universities.

The industry has also managed to survive the recession greatly. With the other industries suffering, students’ accommodation and housing seems to get stronger by the years. The reason for this is that as the jobs dwindle, more are going back to the universities to increase skill to compete. The students are also staying longer to improve skill to masters and doctorate levels calling for longer periods of accommodation.

This has greater need for housing in the UK and the US. The investment has attracted major investments from outside the two countries. The reason for this is majorly that the investments are very low risk. The risk has been calculated to 0.3% making it the least risky investment when it comes to property. The banks and the pensions loaners are also looking into supporting investors in this filed due to the nature of the property investment. It has been seen as the next generation investment and has stood its ground.

The prospects look better and bigger as more and more countries send their students to study and get skill abroad. The developing countries are also upping their game when it comes to university and college education increasing their intake every year. Accommodation is also being taken up by university management and others renting on their own. This has also expanded the horizons for the smaller investors owing a building or two as compared to big investors with complexes. The accommodation requirements are lesser demanding as compared to residential accommodation making them a worthwhile and cheaper investment.

The only risk pertaining to these investments is the students themselves. Students can be quite unpredictable although the insurance companies have come in to deal with the matter amicably. They are the other industry benefiting greatly from student accommodation increase and demand. Offering cover for property both for the landlord and the student, they have hit the gold mine too. The insurance companies had not taken into covering students till after the advent of the accommodation and housing needs. These also brought along the issue of security and cover for the needs of both the students and the landlords.



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