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Students may be breaking up for the holidays, but school’s in for investors this summer, reveals
TheMoveChannel.com‘s Investment Watch. University accommodation is emptying across the UK but for investors, June was the perfect time to move in and prepare for next year, as student housing attracted the most attention on the property portal.
A student housing development in Chester received the highest number of enquiries on TheMoveChannel.com in June, outperforming property listings from around the world, including repossessed apartments in Spain.
Interest remained strong in May’s top listing, a hotel investment in North Dakota, which generated the second highest response thanks to projected returns of up to 46 per cent. Investors were not just drawn to the recovering US economy, though, with a Turkish resort taking third place in the Investment Watch chart, even with the recent unrest that has taken place in the country. Egypt caught buyers’ eyes too, again in spite of unrest in the country at the end of last month.
Indeed, buyers were unafraid to consider a diverse range of countries last month, from Germany to Thailand, in search of the right combination of price and yield. Only two of the 10 most popular listings were lifestyle opportunities, both of which were significantly discounted: a studio apartment in Hurghada for just £6,760 and a discounted Spanish apartment
Schliersee, Bavaria, Germany
in a Murcia golf resort for only £33,600.
Otherwise, buyers were focused on finding the best value returns, as alternative options such as solar energy investments continue to prove a regular presence in the Investment Watch rankings. Hotel rooms were the most popular type of investment, accounting for three out of the top 10 listings: buyers were attracted by 24 per cent NET returns per annum from a five-star Phuket resort, which took seventh place, but demand was higher for a lower-priced Bavarian hotel, which promised 9 per cent yields in the first year, enough to earn fifth spot.
Investors preferred to spend time in the classroom rather than hotels, though, with interest in student property outstripping all other opportunities. Indeed, student housing accounted for two of the 10 most popular listings, topped by the development in Chester, a city which has witnessed the fourth highest growth in UCAS applications in the UK.
TheMoveChannel.com Accounts Director Naz Haghi comments:
“Hotels and student housing continue to be a common choice among investors on the lookout for good value thanks to lower entry costs than other property types. Indeed, it is telling that only one of the 10 most popular listings had a price of over £50,000. The counter-cyclical nature of student housing, though, makes it an ideal investment during times of financial uncertainty: with applications in the UK up for the 2013-14 year, student property is stable as well as affordable.”
Oliver Ramsden of Aspen Woolf Europe, who manage the Chester investment, comments:
“It’s comes as no surprise that a UK student project has topped the list for June. We’re finding more and more investors are now opting for the UK as it is seen as a safe haven and the yield guarantees are unbeatable. Our project in Chester with a 5 year income guarantee sold out in a matter of weeks and we are expecting our new launch in July to do exactly the same.”
Click here to view the top 10 listings on TheMoveChannel.com for May 2013.