Student accommodation is one of the fastest growing sectors in property, having gone from being an ‘alternative’ asset class to a hot investment prospect in the space of a few short years.
We believe it is achievable and as the developer / contractor we are constantly looking to find ways to make buildings more efficient to operate!! The challenge is getting buy in to spend more on the MEP in construction will generate the savings in operational costs!#PWSAdebate— Torsion Group Ltd (@TorsionGroup) November 22, 2018
Would this depend on availability of a variety of product and price points to meet the diversity of the market? Let's argue that 1/5th students live 'on-campus' that's 4/5th in the market seeking alternatives? How to serve them all? With tailored solutions.— GSA Group (@GSASpaceToGrow) November 22, 2018
Very true, however are we not now seeing an oversaturation in certain UK cities?...Liverpool, Newcastle springs to mind, even Glasgow to an extent.— CityRoomRentals (@CityRoomRentals) November 22, 2018
We can't think like this as if so, there will never be seismic improvements in the category. All the main disruptions from other industries have come from small, niche businesses that see a way to do things smarter, cheaper or easier for the customers #PWSAdebate— James Fenner (@JM_Fenner) November 22, 2018
Today, the student housing sector is brimming with opportunity as capital pours in from across the globe and high-tech schemes are developed with a raft of amenities to cater to the millennial market. But there are also challenges.
The impact Brexit will have on universities’ research funding and international students’ appetite to come to the UK remains to be seen – and as students’ fees continue to rise, the affordability of their accommodation is becoming an increasingly hot topic.
Ahead of the Student Accommodation Conference & Awards on 12 December at the InterContinental London – The O2, @Property Week and @JLLUK hosted a Twitter debate to thrash out these and other big questions facing the sector.
Using the hashtag #PWSAdebate, a JLL team led by Huw Forrest, director specialising in student housing, and James Kingdom, head of alternatives research, fielded questions from Property Week journalists and major players in the sector. These included representatives from GSA Group, Campus Living Villages and Coventry University among others. In total, the debate generated almost 2.4 million impressions in the space of an hour – and more than seven million in total.
Were you among those that boosted our #PWSAdebate last Thurs to more than 7m impressions? Thanks to those involved esp. @JLLUK's @huw_forrest & @JamesK_Alts - we'll have @helenlcrane's highlights in this wk's issue ahead of continuing debate at #studentPW https://t.co/W7cYxJNmKk pic.twitter.com/7zH97jVl6C— PropertyWeek (@PropertyWeek) November 26, 2018
If you enjoyed the #PWSAdebate then join us for #StudentPW on 12 December. Tickets are selling fast, connect with the industry’s major student accommodation players and book today https://t.co/UOi17wnDCC @PropertyWeek https://t.co/zF9VJuASju— StudentAccommodation (@StudentPW) November 23, 2018
Carillion's collapse has made on-campus partnerships harder because contractors won't take the kind of risks on costs those structures previously demanded. JLL has been exploring non-OJEU routes to attract an equity/operational partner first, and then do a series of D&B contracts— Huw Forrest (@huw_forrest) November 22, 2018
“The range of topics covered in the #PWSAdebate really highlights the scale of interest in the student accommodation sector,” said Kingdom.
“Investors have a range of options available to them, from the established key regional markets to the growing number of newer universities, which continue to attract an increasing number of students. Despite wider political and economic uncertainties, the quality of UK universities and the underlying demographic trends justify the steady investment into the sector from across the globe.”
Also need to look at how universities are performing which will influence future demand. Look at Coventry league positioning in the league tables.— Huw Forrest (@huw_forrest) November 22, 2018
Affordibility is a key investor focus in the market and presenting product differentiation with be attractive rather than more of the same... it will also offer income diversity to the the student market. Amenity is much more relevant than ever before— Huw Forrest (@huw_forrest) November 22, 2018
Lets not forget if you don't have a great on site management team, they are responsible for the ,community and well being of the building and everyone inside it. #powertothepeople #PWSAdebate https://t.co/FPqb8LuKAA— Property Recruitment (@PropertyRecComp) November 22, 2018
Quality of UK universities and number in the Top 10, 50 and 500 the UK sector's strongest asset. Need to let universities thrive and grow to remain globally competitive— James Kingdom (@JamesK_Alts) November 22, 2018
Difficulty is, in the U.K. research into these areas (in comparison to US/AU) is scarce. We “know” the value that working in partnership with #PBSA providers can make to student experience but can we prove it? #PWSAdebate— Rebecca O'Hare (@Rebecca_ResLife) November 22, 2018
The sector’s investment prospects will be among the many issues debated at the Student Accommodation Conference & Awards next month. There are just a handful of tickets left for the conference, so don’t miss out: