With a total investment spend forecast to reach £5.3 billion in 2017, the purpose-built student accommodation sector (PBSA) represents strong opportunity for both investors but also to tackle the chronic undersupply of student housing in the UK.
To answer the ever-growing demand, a record 30,000 new student bed spaces were delivered in 2017 according to Cushman & Wakefield in their Student Accommodation Report 2017 with supply dominated by the private sector.
Luxury student accommodation provider Collegiate is one of the leading private contributors to the development of the sector. In recent years, it has delivered 20,000 beds across UK 30 cities and with a further 6,100 PBSA beds in the pipeline.
In recent years, the range of PBSA offerings has grown sensationally but Collegiate has noted that studio flats in particular have soared in popularity – a trend also observed by Cushman & Wakefield who recorded a 106% increase in studio bed spaces since 2014.
2018 is again likely to see an explosion in the provision of this type of accommodation as 43% of all new PBSA beds are studios, mostly delivered by the private sector.
For its brand-new development Crown House which opened September 2017 in Sheffield, Collegiate saw demand for its presidential solo studios markedly higher than standard rooms with all solo studios already sold out for the 2018/19 academic year.
“With comfort, cleanliness, privacy and security, our studio bed spaces offer value and style of living students have been used to before they leave home. Living in a studio allows them to focus on their studies and that’s the priority for their parents, the majority of which pay students’ rent. Thus, without a doubt, I believe that this trend of solo living will continue in 2018.”
Heriberto Cuanalo, CEO, Collegiate
The trend of studio living is most likely driven by students coming from outside the UK who want to make the most of their student experience abroad. The Cushman & Wakefield report shows clear evidence of the importance of foreign students reminding that nearly one quarter (23%) of the student population are from outside the UK.
This growing interest for PBSA units from foreign students is also witnessed by Collegiate which reports that 26% of its residents are from China with demand for studio schemes driven by the outstanding service it offers to international students.
The benefits of living in studio accommodation provided by Collegiate are significant as it is designed to maximise space and light, providing ample room to study and rest with privacy.
Take Collegiate Edge Apartments in Birmingham for instance. Its high-spec studio apartments, priced from £205.00 per week, come with state-of-the-art kitchens that add flavour to every meal and contemporary study stations to help residents focus.
Professional interior designers are also employed to deliver a stylish and modern look and feel to both the accommodation itself and the communal areas. The amenity spaces from the study rooms through to the in-house cinema and outdoor terraces are also carefully crafted to create the ideal community environment.
The on-site concierge teams are also present to reassure residents, answer queries and deal with any maintenance issues in a timely fashion.
For more information and to book accommodation in university towns and cities across the UK and Europe, contact Collegiate on +44 1235 250 140 or visit www.collegiate-ac.com.