Student Accommodation – What’s all the hype about?
Student Accommodation is a buzzword in the property world…
Mention student accommodation to any serious property investor and their ears will prick up. Over the past five years or so, the demand for this property class has been exceptionally high due to the fact that student accommodation located within close proximity to major universities offers investors a solid investment with a reliable return.
Student accommodation may be leased out to a university typically over 10 months of the year or directly with the students themselves. Each approach has its pros and cons, however, in both instances, it is necessary to be a certified supplier of student accommodation with minimum standards being met.
Due to a shortage of quality student accommodation in many regions across South Africa, demand for space often outstrips supply resulting in very low vacancies in suitable buildings.
One of the major benefits of operating a student accommodation facility is that the potential rental one can achieve per room is often much higher than for the equivalent room in a normal residential building. Rental is charged per student and an average student accommodation room can fit up to four students in a room.
It is no wonder why listed property funds and private investors alike are clamouring to acquire quality student accommodation in major city centres.
Source Ari Ben (CEO AuctionInc.)
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