The influx of international students heading to the UK and the increasing number of UK nationals enrolling in continued education, student property accommodations is rising steadily up to 17%. Investing in student property have proven to be a wise move as more and more students prefer to rent homes with a great location rather than fancy homes. Which countries have the best student housing yields?
A report by Savills revealed that foreign learners in Poland increased by 10.6% year-on-year. The population of foreign students is expected to grow by another 8-10% annually to reach 100,000 by 2021. At present, Poland offers 6% prime net student housing yields, highest in the world.
What Contributes to Student Housing Yields?
Student housing sector boomed in 2013 and it is not expected to slow down anytime soon. Attendees of the Central Eastern European Market discussed that student housing is successful because of the growing number of the international student community. Whilst there is a notable decrease in the population of students in Poland, demand for student housing comes from international students.
The European market is banking on attracting international students to fuel economic growth. In fact, Holland, Germany, and Spain have intensified their marketing programmes with universities to attract more students to the country.
International students coming to the CEE countries was brought by the increase in courses taught in English coupled with lower educational costs compared with US or UK institutions. In a span of 12 years, there has been a 64% growth in the number of international students globally.
Supply and Demand in Student Accommodation Likely to Shift in 5 Years
Currently, university accommodations and private rental homes are not enough to sustain the high volume of students enrolling in the country. Most of the time, university accommodations are only for freshman students so they have to look for rental options during their second year, third year, and even post-graduate years.
The increase in the number of international students translates to more demand for student accommodations. At present, demand for a 2-bedroom property in a 20-square metre property is high. However, experts believe that in five years’ time, preference will be higher for a one-bedroom property.
Paying More for Quality
To maximise student housing yields, developers must carefully look into understanding the needs of the students. Students have unique personalities and this would reflect on the properties they are most likely to rent out. Whilst students prefer to give more importance about their degrees, providing a liveable home is also a top priority.
Students are willing to pay more for properties with higher quality. Providing a housing complex in a great location with better quality will definitely gain more yields for developers. At present, a great percentage of international students occupy private market housing.
Poland’s Housing Market Is Still Young
Despite still being in its early stages of development, Poland’s student accommodation market has a great potential to grow. A great number of private student houses are often in old buildings. These student houses cannot offer much compared with purpose-built student housing schemes built in premiere locations. Poland can still do so much to improve and bank on this growing demand.