Property Hunter Magazine Issue 63- February 2015 | Page 13

These numbers point to a potentially
lucrative property investment market in
student accommodation. While student
property has performed well in recent years,
there is no guarantee this will continue.
Rental income is not guaranteed and yields
can vary so it is essential to do proper
research when choosing which location to
buy and investment strategy.
The Knight Frank Student Property Index
shows that total returns from student
accommodation outperformed other property
asset classes in the year to September 2013.
This has been the case since 2011.
According to the Knight Franck Student
Property Report 2014, the attraction of the
student accommodation sector in the UK
has been driven by the story of structural
undersupply and positive rental growth

every year throughout the economic
downturn. It is forecast that this contra
cyclical dynamic will remain the driving force
behind investment into the medium term.
The structural undersupply remains in
all key university markets and this will
ensure positive rental growth remains
a defining characteristic. The stability
and performance combined with the
improvement in profile of the sector have
established student accommodation as an
asset class in its own right.

Weighing The Pros And Cons

As with all investment decisions, it’s
important to carefully weigh up the pros and
cons before making a decision. Investing
in student accommodation whether in
Malaysia or overseas will entail a certain
number of considerations that you have to
take into account.

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students around the globe enrolled in higher
education will reach 262 million by 2025, up
from 178 million in 2010.

Investing in student
accommodation whether in
Malaysia or overseas will entail a
certain number of considerations
that you have to take into account.

Private and institutional investors have been
attracted to student property as an asset
class due to the relatively high

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