Demand in the £20bn
The firm adds that the sector is no longer a niche property market but is now a recognised as an asset class in its own right by financial institutions and investors,.
The
King Sturge says there were more than £700m of transactions in the sector last year, the largest being the disposal of the Moorfield student portfolio, a £190m sale of around 4,000 bed spaces in several cities.
With the numbers of students continuing to rise – there were more than 1.43m in full-time higher education in 2007, an increase of almost 6% on the previous year – demand continues to outstrip supply.
“This year we have recorded a strong increase in the number of privately developed, purpose-built beds, up by 36% since 2005 to more than 123, 500,” says Philip Hillman, the national head of King Sturge’s
“It is clear that the sector is entering a new phase of university-led development and refurbishment of existing stock, alongside an increased focus on the provision of premium accommodation for overseas students in major European university centres.”
But he warned that while significant opportunities still exist in
The three market leaders in the sector remain Unite Group, UPP and Opal Property Group.
Between them they account for more than half of the
Outside
Hillman added: “After a period of extraordinary growth in the development by the private sector of direct-let student accommodation, the prime focus now for the private sector is for direct-let schemes in the capital.
“There will, however, continue to be large-scale developments in provincial university cities, where there is still an imbalance in the supply of good quality purpose-built accommodation.”
