Student housing sector, which is still not very familiar to Russians, recently formed a separate market. At the same time in recent years, student property in some countries exceeded the yield other markets.
In foreign countries, most of them students dormitories is owned by financial institutions or frequent investors. For the purchase of such housing is further lease.
Thanks to the reliability of institutions related to the student's property market, it has a good potential to become an important segment of the real estate market as a whole. To date, due to a small competition and growing demand student property brings a stable rental income. Despite the fact that until recently, the maximum share of the total investment in the sector belonged to institutional investors in the near future is expected to increase private investment in the market.
The most popular countries for education throughout the world are the United States, United Kingdom, Germany, France and the Netherlands, so the student accommodation sector is growing faster than in other countries.
market dynamics
Known British company Savills recently published analysis of the state and prospects of the market of real estate students worldwide. This market was one of the most successful during the global financial crisis, rising in terms of investment with $ 3.4 billion in 2007 to $ 7.2 billion in 2013.
During the crisis, there was a sharp increase in the number of students around the world that, in many respects, was associated with the need for retraining workers and adaptation to new macroeconomic conditions. At the same time, growing prosperity in Asian countries (29% of foreign students in the United States in 2012-2013 were from China) create demand for quality student housing, despite the fact that the market for student housing in recent years has become increasingly international and mobile.
At the moment, the share of foreign private investment in the sector is 39% worldwide. At the same time strengthens the role of indirect investments through various funds in developed markets. However, private equity still play a significant role in the less developed markets, particularly in continental Europe, where acutely feels the need for updating the increase in the number of student housing.
The largest markets that meet this growing demand in recent years, were English-speaking countries, especially the US and the UK, as the most popular country in terms of education. Together, these markets have increased rates by 780% since 2009.
The increasing growth of activity in the most developed markets of student property has reduced its profitability. During the period from 2009 to the first quarter of 2014 rental income in the United States and the United Kingdom decreased from 6% to 6.3%. World figure stood at 6% in the first quarter of this year. Rental income from student housing has been steadily declining, and high predictability of the market compared to the residential real estate market favors the tendency to further decrease.
Major markets
The United States has the most developed market in this sector, began a rapid growth in the early 1990s against the background of aging model campuses and the growing demand for improved living conditions on the part of foreign students. Despite the high cost of education and living in the US, American universities remain among the most attractive for foreign students.
The volume of private property that does not belong to universities is growing. At the moment, 12% of students in the United States live in university campuses, 25% rent housing, 63% live with their parents or relatives. The share of foreign private investors in the market is only 2% of the total. In this case, the main investors are real estate funds (REITs), which are less subject to risks.
UK property market student also grew rapidly during the zero years. During the recession, the most well-schools collaborated with commercial entities and private investors is significantly outdated housing. The share of foreign investors in the UK student property was 72% in 2013, most of which came from the United States.
Promising investment markets include countries in continental Europe due to the historically small number of offers on the market. The demand for education in Europe is largely due to the number of English-language courses, popular in the business for a much lower price compared to competitors from the United Kingdom and the United States. Leaders in the field of education here at the moment are Germany, France and the Netherlands.
Germany is one of the world leaders in the popularity of universities, accounting for about 2.6 million students, of whom 11.5% are foreigners. At the same time the country's acute shortage of student housing, which is estimated at 100 000 units.
Over the next two years is expected to appear 7600 new units, but this is only 5.8% of the total. The greatest number of new housing in the next two years is expected in Frankfurt - about 25%. Rents in the sector increased by 25%, while the amount of unoccupied housing has decreased to below 2%. Most of the market is occupied by semi-governmental organizations Studentenwerk. The average rental price of this property is 220 euros per month. The private sector is represented by a relatively small number, mostly in the form of apartments, rather than the traditional student housing.
By increasing the number of courses in English in recent years, universities in France have greatly increased the number of foreign students. It is expected that by 2020 this will rise from 12% to 30%. The average rent for student housing starts from 395 euros and 894 euros comes to Paris. The deficit in the student housing is high enough - in the largest cities by one unit in special complexes have an average of 10 students.
Student real estate market in France has a fairly high threshold of entry. Buying real estate in the central areas in close proximity to educational institutions is problematic, and housing in remote areas may have a low popularity among students. Over the next four years, about 22 000 new units in purpose-built complex will be in the 20 largest cities in France.
The Netherlands are among the leaders in Europe in the number of training courses in English. However, the cost of tuition for foreign students is relatively low. As a result, only for the period from 2007 to 2011 the number of foreign students in the Netherlands increased by 40%.
The largest number of students studying in Amsterdam. Of these, about 5% - foreigners. About 45% of all students live with their parents during the training period. Most of the remaining share of the use of social housing. The average cost of rental housing is 415 euros per month, and in view of the regulation of the state of the rental market, this level about the same across the country.
The volume of construction of student housing up to 2016 is estimated at $ 12 000 new units. Student real estate market in the Netherlands quite promising. In the confluence of the next 12 years is expected to increase the number of students by 7.1%. Until 2011, the market of Amsterdam dominated the social housing sector. Since then, the city has become one of the most attractive investment markets.
Student real estate market is now among the most attractive and reliable investment. Actively growing in recent years, this segment significantly changed the investment landscape of international real estate markets. By increasing the mobility of students around the world, as well as rising expectations of tenants living conditions, private capital are increasingly entering the market. The number of students in the world in the next 10 years will increase, which means strong demand and, consequently, a stable income.
In foreign countries, most of them students dormitories is owned by financial institutions or frequent investors. For the purchase of such housing is further lease.
Thanks to the reliability of institutions related to the student's property market, it has a good potential to become an important segment of the real estate market as a whole. To date, due to a small competition and growing demand student property brings a stable rental income. Despite the fact that until recently, the maximum share of the total investment in the sector belonged to institutional investors in the near future is expected to increase private investment in the market.
The most popular countries for education throughout the world are the United States, United Kingdom, Germany, France and the Netherlands, so the student accommodation sector is growing faster than in other countries.
market dynamics
Known British company Savills recently published analysis of the state and prospects of the market of real estate students worldwide. This market was one of the most successful during the global financial crisis, rising in terms of investment with $ 3.4 billion in 2007 to $ 7.2 billion in 2013.
During the crisis, there was a sharp increase in the number of students around the world that, in many respects, was associated with the need for retraining workers and adaptation to new macroeconomic conditions. At the same time, growing prosperity in Asian countries (29% of foreign students in the United States in 2012-2013 were from China) create demand for quality student housing, despite the fact that the market for student housing in recent years has become increasingly international and mobile.
At the moment, the share of foreign private investment in the sector is 39% worldwide. At the same time strengthens the role of indirect investments through various funds in developed markets. However, private equity still play a significant role in the less developed markets, particularly in continental Europe, where acutely feels the need for updating the increase in the number of student housing.
The largest markets that meet this growing demand in recent years, were English-speaking countries, especially the US and the UK, as the most popular country in terms of education. Together, these markets have increased rates by 780% since 2009.
The increasing growth of activity in the most developed markets of student property has reduced its profitability. During the period from 2009 to the first quarter of 2014 rental income in the United States and the United Kingdom decreased from 6% to 6.3%. World figure stood at 6% in the first quarter of this year. Rental income from student housing has been steadily declining, and high predictability of the market compared to the residential real estate market favors the tendency to further decrease.
Major markets
The United States has the most developed market in this sector, began a rapid growth in the early 1990s against the background of aging model campuses and the growing demand for improved living conditions on the part of foreign students. Despite the high cost of education and living in the US, American universities remain among the most attractive for foreign students.
The volume of private property that does not belong to universities is growing. At the moment, 12% of students in the United States live in university campuses, 25% rent housing, 63% live with their parents or relatives. The share of foreign private investors in the market is only 2% of the total. In this case, the main investors are real estate funds (REITs), which are less subject to risks.
UK property market student also grew rapidly during the zero years. During the recession, the most well-schools collaborated with commercial entities and private investors is significantly outdated housing. The share of foreign investors in the UK student property was 72% in 2013, most of which came from the United States.
Promising investment markets include countries in continental Europe due to the historically small number of offers on the market. The demand for education in Europe is largely due to the number of English-language courses, popular in the business for a much lower price compared to competitors from the United Kingdom and the United States. Leaders in the field of education here at the moment are Germany, France and the Netherlands.
Germany is one of the world leaders in the popularity of universities, accounting for about 2.6 million students, of whom 11.5% are foreigners. At the same time the country's acute shortage of student housing, which is estimated at 100 000 units.
Over the next two years is expected to appear 7600 new units, but this is only 5.8% of the total. The greatest number of new housing in the next two years is expected in Frankfurt - about 25%. Rents in the sector increased by 25%, while the amount of unoccupied housing has decreased to below 2%. Most of the market is occupied by semi-governmental organizations Studentenwerk. The average rental price of this property is 220 euros per month. The private sector is represented by a relatively small number, mostly in the form of apartments, rather than the traditional student housing.
By increasing the number of courses in English in recent years, universities in France have greatly increased the number of foreign students. It is expected that by 2020 this will rise from 12% to 30%. The average rent for student housing starts from 395 euros and 894 euros comes to Paris. The deficit in the student housing is high enough - in the largest cities by one unit in special complexes have an average of 10 students.
Student real estate market in France has a fairly high threshold of entry. Buying real estate in the central areas in close proximity to educational institutions is problematic, and housing in remote areas may have a low popularity among students. Over the next four years, about 22 000 new units in purpose-built complex will be in the 20 largest cities in France.
The Netherlands are among the leaders in Europe in the number of training courses in English. However, the cost of tuition for foreign students is relatively low. As a result, only for the period from 2007 to 2011 the number of foreign students in the Netherlands increased by 40%.
The largest number of students studying in Amsterdam. Of these, about 5% - foreigners. About 45% of all students live with their parents during the training period. Most of the remaining share of the use of social housing. The average cost of rental housing is 415 euros per month, and in view of the regulation of the state of the rental market, this level about the same across the country.
The volume of construction of student housing up to 2016 is estimated at $ 12 000 new units. Student real estate market in the Netherlands quite promising. In the confluence of the next 12 years is expected to increase the number of students by 7.1%. Until 2011, the market of Amsterdam dominated the social housing sector. Since then, the city has become one of the most attractive investment markets.
Student real estate market is now among the most attractive and reliable investment. Actively growing in recent years, this segment significantly changed the investment landscape of international real estate markets. By increasing the mobility of students around the world, as well as rising expectations of tenants living conditions, private capital are increasingly entering the market. The number of students in the world in the next 10 years will increase, which means strong demand and, consequently, a stable income.
Germany is one of the leader and biggest in popularity of universities. and i must say the volume of construction students housing has been increased .
ReplyDeletethe real state market in France now has a fairly high.
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