Student Accommodation in Europe is attracting overseas investors

For overseas investors, finding the right property which offers great returns is often hard to find. The budget of small investors often does not stretch far enough so that they can purchase non-residential commercial property.

However, overseas investors have not really explored the possibility of investing in student accommodation which comes with lower risks and higher yields.

What are the benefits?

A lot of money has been invested by foreign investors since 2012, in fact it’s around £6 billion, and so what exactly makes it such as eye-catching prospect?

The main thing to consider is the fact that international students are increasing in numbers, this means that the demand for student accommodation will grow considerably. For those looking to invest, it will mean that there is a lower risk as students will always require accommodation.

Student accommodation investment also come with higher yields with the average yield being around 4-6% each year. This figure can change depending on the location and the size of the university but the yields are certainly achievable.

The price of apartments can be relatively low with apartments in Liverpool being available for as little as £70,000 and with this comes complete management of the property as investors only invest as a way of maintaining capital. This will mean that the property is managed on a daily basis from finding tenants to dealing with repairs.

However, there are potential problems. Repurposing these buildings is often difficult because they have been built specifically for students and they are therefore located in specific areas. Investors are not able to use the apartments for their own use and tenants have to be studying at the university.

It has already been mentioned that the average yield is around 4-6%, so anything promised above this is likely to come with risks such as the location and a lack of demand. Therefore, purchasing a brand new property will mean that yields can be achieved straight away.

The countries that investors should consider are the UK, Germany and France. This is because the markets in these countries offer reliability as well as demand. For investors, choosing the right fine location means it has to have one magnet and this means a university that has a low supply of property and student accommodation.

In the UK the likes of Bristol, London and Edinburgh have a low supply and this makes them ideal locations for student accommodation. The number of students heading to the UK to study is on the rise and the same can be said for international students. Students are now searching for accommodation that is plush, comfortable and has everything that they need and this is great for investors as it gives them an insight into what they need to invest in, allowing them to ensure that they make the right investment that comes with the best yields.

Mark Burns

Mark Burns is a Director and Property Investment Consultant at Hopwood House. With over 10 years' experience in property investment, Mark has provided investors with a wide range of opportunities in exotic locations around the world.

You May Also Enjoy

Estate Agent Talk

Marilyn Monroe bought her own home just four months before she died.

August 4th marked the 60-year anniversary of the death of Marilyn Monroe, who would be 96 if she were still alive. Still a sex symbol today, the blonde bombshell started as a pin-up model before branching out into cinema. Famous for her comedies, such as Some Like it Hot and Gentlemen Prefer Blondes, she was…
Read More
Breaking News


Daily bite-sized proptech and property news in partnership with Proptech-X. Highlight New Smoke and Carbon Monoxide Alarm Regulation Changes for Landlords Online lettings platform is seeking to raise awareness among landlords and tenants of changes to the Smoke and Carbon Monoxide Alarm (England) Regulations. The regulations have been in place since 2015, but are…
Read More
Home and Living

How To Increase Your Homes Value With A Loft Conversion

Loft conversions are one of the easiest, quickest ways to add value to your property both functionally, and financially. If you’re still undecided about whether or not a loft conversion is right for you, read on to find out more about them and how they can help you boost the worth of your home: What…
Read More
Home and Living

How To Use Bed Sheet Holder

Bed sheet holder is a wonderful product that has been helping many people over the world to hold their bed sheets and make them stay in their place. Bed sheet holders are used to fasten your bed sheets. You can use them on your bedroom or any other place you find convenient. There are different…
Read More
Love or Hate Rightmove
Breaking News

Dining Rooms Decline And Orangeries On The Rise

New analysis reveals the home features that have shifted in popularity over the last ten years: Garden offices, orangeries, summer houses, underfloor heating, bi-fold doors and open plan rooms have all surged in popularity Conservatories, greenhouses, dining rooms, fitted wardrobes all appear to be on the decline The pandemic-induced working from home has led to…
Read More
Estate Agent Talk

Make Your Property Perfect For Incoming Tenants With These Steps

If you have a property in your possession that is ready (or nearly ready) to be rented out to potential tenants, you’re going to have to make sure that you have everything perfectly lined up and sorted out. Tenants are going to be looking for somewhere that they can feel comfortable and somewhere they can…
Read More