Developers should consider mid-priced student accommodation over high-end sites, a DTZ report on London has concluded.
The real estate advisor has calculated that the average 2011/12 rent in the private student housing sector is £8,849 pa, compared with £4,549 for university accommodation.
Sarah Jones, associate director, education, at DTZ, said: “The really expensive of end of the student housing market is already massively provided for in London, and I would advise the large number of new developers looking to get into the sector, to consider looking at investments somewhere in between university campus prices, and privately owned off-campus sites.”
The report concludes that en-suite accommodation priced within the mid-range of rental levels is the most steady and reliable option for investors, on account of the rise in student fees, which has tightened student budgets.
joanna.bourke@estatesgazette.com
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