Rising student expectations create demand for accommodation

The student accommodation market has become an important niche market for private investors, supporting progressive growth in the construction of new student accommodation over the last five years.  The demand for such accommodation remains strong as students’ expectations’ change, with students increasingly wanting access to high quality, purpose built accommodation either on or close to campus throughout their time at university. The preference for such accommodation is especially strong among overseas students, who now account for 23% of those on full time courses.   Despite recent strong growth, only 27% of students are currently in halls of residence, pointing to further potential growth over the next couple of years. Furthermore there is a strong development pipeline of projects.  Indeed, whilst the value of project starts there was a dip in the value of student accommodation projects starting on site last year, Glenigan data reveals that the value of projects securing detailed planning approval soared to £1.7 billion, pointing to further strengthening in sector activity on site over the coming year.