Student Accommodation seeing growth and demand

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Investing in student accommodation property has become increasingly popular among real estate investors. This niche market offers a range of benefits, including stable demand, attractive yields, and relatively low vacancy rates.

Consistent Demand

Universities and colleges continue to see high enrollment numbers globally, ensuring a steady demand for student housing.

South Africa is currently facing a critical shortage of student accommodation, as highlighted in the recent article by IOL Property. According to this report, not only is there a significant need for housing but there's also an urgency to address the issue now. The question isn't if student accommodation is a worthy investment; it's how quickly you can hop on-board. With an estimated 250,000 students in need of accommodation throughout South Africa, the demand for student housing is at an all-time high. 

 

In today's real estate market, savvy investors understand the importance of diversification and the value of exploring promising opportunities. Student accommodation is one such sector experiencing tremendous growth and demand. With a growing number of students in desperate need of homes, investing in safe, comfortable, and modern living spaces becomes an undeniable necessity. 

Attractive Rental Yields

Students typically commit to accommodation for the entire academic year, providing predictable rental income. They also often command higher rents per room compared to regular residential properties, resulting in higher yields.

Due to the continuous influx of new students each year, vacancy rates in student accommodations are typically lower than in other rental markets; and because many students' rents are guaranteed by their parents, the risk of non-payment is reduced substantially.

Purpose-Built Student Accommodation 

Furthermore, Another trend in the South African Purpose Built Student Accommodation (PBSA) market is the growth of off-campus accommodation. Many students are now looking for accommodation options that are located near their universities or colleges, but which offer more affordable and flexible living arrangements. This trend is being driven by the growing number of private sector investors who are investing in off-campus accommodation developments.

Many students in South Africa are looking for accommodation that fosters a sense of community and social interaction. This has led to a rise in community-focused housing options that provide shared spaces and communal areas for students to socialize and connect.

And lastly, another trend in the South African PBSA market is the use of technology-driven amenities. Many students are now looking for accommodation options that offer high-speed internet, smart home features, and other technology-driven amenities such as virtual study rooms, online learning platforms, and mobile apps. This trend is being driven by the increasing use of technology in education and the need for students to stay connected and productive.

Volley Baileys

Volley Student Living is an ambitious student living brand with a mission to transform the student housing market and the latest development under the brand is Volley Baileys in Pretoria. Their focus is on providing students with affordable, high-quality accommodation that supports their academic and personal development. 

Pretoria, with its strong educational institutions, growing student population, and affordable property prices, presents a compelling investment opportunity.

Volley Baileys' innovative approach to student accommodation includes offering state-of-the-art facilities and a range of amenities designed to promote student well-being. This development is located in convenient locations, close to University of Pretoria and public transportation hubs, making it easy for students to get to and from their classes.

This is next level student living.

The development hosts co-working spaces, a boutique coffee shop and restaurant; laundry facilities, a concierge, beautiful gardens with braai areas; Wi-Fi and world class security.

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You can invest in Volley Baileys on EasyProperties.

We’re getting this property at a 5% discount to asking prices and we’ve got guaranteed rental for three years, with a 5% escalation each year.

Internal Rate of Return: 10%

Net rental yield: 9.05%

Invest in Volley Baileys

 

Source - IOL, Property Wheel, PwC South Africa, "Real Estate Investor Survey 2020", Knight Frank, "Student Accommodation Report 2021"

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