Student Accommodation in all Metro Cities

Besides a shortage of suitable properties, the student accommodation market in South Africa is still receiving a significant influx of property investment comments Rainer Stenzhorn, of in2assets, the national Property company that specialises in property marketing and operates its own commercial property auction division.

Student Accommodation in all Metro Cities

Student Accommodation in all Metro Cities still attracting Property Investment

 

Besides a shortage of suitable properties, the student accommodation market in South Africa is still receiving a significant influx of property investment comments Rainer Stenzhorn, of in2assets, the national Property company that specialises in property marketing and operates its own commercial property auction division.

Since the Student Accommodation market has developed in South Africa a chronic lack of

appropriate buildings have been the major problem in all metro cities and demand far outstrips supply, and it is this fundamental imbalance which will drive prices consistently higher. Not only is student accommodation becoming the subject of greater investment, it is also increasingly being shaped by those who will be using it, says Stenzhorn.

 

Historically, accommodation for students has been provided by tertiary institutions themselves, but as operating budgets are slashed and property becomes increasingly expensive to acquire and maintain, many universities are outsourcing the provision and management of student accommodation to independent companies and in many instances partnering with them to do so, continues Stenzhorn.

We understand that education is a massive investment for families and sponsors, so students are looking for value for money when it comes to accommodation, but this doesn’t mean cheap and nasty like some of the buildings we receive to take to investors.

It is common sense that students want a safe and secure living space that feels like home. Leaving them free to focus on their studies, making life-long friends, pursuing academic excellence and having the time of their life! 

Stenzhorn explained that developers are listening to the needs of students and delivering the types of properties they want, such as apartments with en-suite bathrooms as standard. However, the shortage of buildings and the rising price expectations of sellers, makes this task extremely difficult.

The fundamentals of the student accommodation market remain strong: unquenchable demand, consistent revenue streams and above-average investment returns.  How can we find the buildings in the right areas to please the investors that are on our doorstep waiting for us to deliver the right property, ends Stenzhorn of in2assets?    

Posted by In2Assets