According to a recent report in the Financial Times (Ft.com), investment in student accommodation hit around £800m in the past year with the interest in the relatively low risk investment model reaching an all time high. Lending has also generally increased for firms looking to build student accommodation because when it comes to lending, this is going to be seen as a very secure loan from the point of view of the banks and financial institutions.

Student property can present a fantastic investment opportunity and avenue for investors, because it has so many things going for it.

One of the main reasons why investing in Proptech berlin student accommodation can bring massive rewards is because of a national shortage of available accommodation, which is heightened in many of the key areas of the country. There is and probably has been for some time a lack of available property for students to rent and as any investor knows, when demand outstrips supply, the investment potential can be massive.

You then have to think about occupancy rates as well. Unlike other investment properties, where you hope to get long term tenants, student accommodation will have a much less life span, but because of the shortage and also the near all year round occupancy demands, you are generally not going to struggle for a student tenant for most of the months of the year. In fact, many students will rent the accommodation all year, even if they go home for a few weeks here and there, because they know that getting somewhere when they return could be troublesome to say the least.

It is important to still have your exit strategy sorted when you invest in student accommodation, just like any other model, because with any investment that you make, you should always have some kind of exit strategy in place as this can make sure your investment stays as low risk as possible.

When it comes to student accommodation, investing in full properties, like apartments, flats and houses often offer the lowest risk because they have a much better resale opportunity than when it comes to student pods, which can be quite difficult to move on to other investors or buyers should you decide that you want to sell. At least when you rent out a property or room within in a property to students, you still have the option to shift the property should you want to move on to other investments or pull out your money.

 

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